Plymouth Industrial REIT ( NYSE: PLYM ) strengthened its balance sheet earlier than planned by converting remaining series B preferred stock held by Madison International Realty into ~1.9B shares of common stock on a leverage-neutral basis.
With the early conversion and the execution of an interest rate swap for $150M of notional unsecured debt, Plymouth ( PLYM ) still reaffirmed its previously issued guidance.. On May 4, the company reaffirmed its FY2022 guidance for core FFO per share at $1.80-$1.85. It also expects same-store portfolio NOI growth on cash basis of 3.5%-4.5%.
On Aug. 12, 2022, Madison informed the company that it elected to convert its remaining 2.21M shares of series B preferred stock into common stock, which entitled Madison to 2.71M shares of PLYM stock. The REIT, though, elected a combination settlement of 1,915,511 shares of common stock and $15.0M in cash.
The cash portion was provided by a one-time use of Plymouth's ( PLYM ) at-them-market program to transact with one institutional investor at $21.35 per share.
The company also said the rate on ~95% of its outstanding debt as of June 30, 2022 is now fixed.
"While the conversion of these Series B preferred shares was earlier than we had originally anticipated, we have now simplified and strengthened our balance sheet on a leverage-neutral basis," said CEO and co-founder Jeff Witherell. "With the strategic execution of our ATM program through a block trade, we were able to add another top 10 shareholder, partially fund the conversion with cash and minimize the number of common shares that would have otherwise been required."
In March Plymouth Industrial REIT ( PLYM ), agreed to acquire Madison International Realty's 80% interest in Plymouth MIR JV LLC for $46.6M in cash, in addition to the assumption of $56.0M in secured debt.
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Plymouth Industrial REIT converts series B preferred held by Madison International