The exchange is intended to generate $5 million in additional cash flow per year, according to the company's prepared statement.
The offering will exchange each preferred share for either two common shares or one common share and $12.25 in cash. A total of 12.4 million preferred shares were validly tendered and not withdrawn as per the exchange offer and represent 99% of the issued and outstanding Series A convertible preferred shares.
Cornerstone will issue a total of 13.2 million common shares, with a total payout of $143.5 million in cash in exchange for the convertible preferred shares.
Cornerstone is a REIT that manages and owns select apartment communities in Georgia, Virginia, North Carolina, South Carolina, and Texas. It owns 72 multi-family communities that contain 18,076 apartment homes.
The firm manages a 188-unit and a 358 unit apartment complex in Norcross, GA; a 350-unit apartment property in Dunwoody, GA; and a 188-unit apartment complex in Morrow, GA.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.