VIRGINIA VEACH, VA-Wheeler REIT has priced a public offering and sale of 720,000 shares of its Series B convertible preferred stock at $25.00 per share. It also priced six warrants at an $5.50 per share when excised, for total proceeds of about $18 million for the REIT.
The preferred stock will have an interest rate of 9% per annum and will have a conversion price of $5.00 per share of common stock. The warrants have five-year terms.
The offering follows a $25 million credit line facility it secured with KeyBank National earlier this year. It also follows a steady stream of targeted acquisitions it has been making, such as the acquisition of five grocery-anchored shopping centers in South Carolina in December 2013.
Wheeler REIT is also launching a development unit as part of its growth strategy.
Come back tomorrow to hear the REIT's plans on how it is approaching this new business line.
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