FREEHOLD, N.J., March 6, 2017 /PRNewswire/ -- Monmouth Real
Estate Investment Corporation (NYSE: MNR) (the "Company"), a real
estate investment trust (REIT) specializing in single-tenant,
net-leased industrial properties, today announced that it has
priced a public offering of 3,000,000 shares of its 6.125% Series C
Cumulative Redeemable Preferred Stock (the "Series C Preferred
Stock"), liquidation preference of $25.00 per share, at a public offering price of
$24.50 per share, before underwriting
discounts. In connection with the offering, the Company has
granted the underwriters an option for 30 days to purchase up to
450,000 additional shares of Series C Preferred Stock to cover
overallotments, if any. The Series C Preferred Stock is listed for
trading on the New York Stock Exchange under the symbol "MNRprC."
The offering is subject to customary closing conditions and is
expected to close on or about March 9,
2017.
The Company estimates that the net proceeds from this offering,
after deducting underwriting discounts (before other transaction
costs), will be approximately $71.2
million, or $81.9 million if
the underwriters exercise in full their option to purchase
additional shares to cover overallotments, if any.
The Company intends to use the net proceeds from this offering
to redeem all of the outstanding shares of its 7.875% Series B
Cumulative Redeemable Preferred Stock. The remaining proceeds
will be used to reduce the amount outstanding under its unsecured
revolving credit facility, to purchase properties and fund
expansions of existing properties in the ordinary course of its
business and for general corporate purposes.
RBC Capital Markets, LLC, BMO Capital Markets Corp. and J.P.
Morgan Securities LLC are the joint book-running managers for the
offering. D.A. Davidson &
Co., Janney Montgomery Scott LLC and Wunderlich Securities, Inc.
are co-managers for the offering.
The offering will be made pursuant to the Company's currently
effective shelf registration statement filed with the Securities
and Exchange Commission.
Copies of the preliminary prospectus supplement and accompanying
base prospectus for this offering may be obtained by contacting:
RBC Capital Markets, LLC, Three World Financial Center, 200 Vesey
Street, 8th Floor, New York, New
York 10281, Attention: Transaction Management, email:
rbcnyfixedincomeprospectus@rbccm.com, telephone: 1-866-375-6829;
BMO Capital Markets Corp., 3 Times Square, 25th Floor, New York, New York 10036, Attention: Equity
Syndicate Department, email: bmoprospectus@bmo.com, telephone:
1-800-414-3627; or J.P. Morgan Securities LLC, 383 Madison Avenue,
New York, New York 10179,
Attention: Investment Grade Syndicate Desk, telephone:
1-212-834-4533.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such
jurisdiction.
ABOUT MONMOUTH REAL ESTATE
INVESTMENT CORPORATION
Monmouth Real Estate Investment Corporation, founded in 1968, is
one of the oldest public equity REITs in the U.S. The Company
specializes in single-tenant, net-leased industrial properties,
subject to long-term leases, primarily to investment grade
tenants. Monmouth Real Estate Investment Corporation is a
fully-integrated and self-managed real estate company, whose
property portfolio consists of 100 properties containing a total of
approximately 16.6 million rental square feet, geographically
diversified across 30 states. In addition, the Company owns a
portfolio of REIT securities.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
Forward-looking statements provide the Company's current
expectations or forecasts of future events. This cautionary
statement is being included to make applicable and take advantage
of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 for any such forward-looking statements.
Forward-looking statements include statements about the Company's
expectations, beliefs, intentions, plans, objectives, goals,
strategies, future events, performance and underlying assumptions
and other statements that are not historical facts, including with
regard to the Company's securities offering or the anticipated use
of proceeds. You can identify forward-looking statements by their
use of forward-looking words, such as "may," "will," "might,"
"anticipate," "estimate," "project," "expect," "believe," "intend,"
"plan," "should," "seek" or comparable terms, or the negative use
of those words, but the absence of these words does not necessarily
mean that a statement is not forward-looking. The forward-looking
statements are based on the Company's beliefs, assumptions and
expectations of its future performance, taking into account all
information currently available to it. Forward-looking statements
are not predictions of future events. These beliefs, assumptions
and expectations can change as a result of many possible events or
factors, not all of which are known to the Company. Some of
these factors are described under the headings "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" as included in the Company's Annual Report
on Form 10-K for the fiscal year ended September 30, 2016 and its other periodic
reports filed with the Securities and Exchange Commission, which
are accessible on the Securities and Exchange Commission's website
at www.sec.gov. These factors should not be construed as
exhaustive and should be read in conjunction with other cautionary
statements that are included in the filings. These and other
risks, uncertainties and factors could cause the Company's actual
results to differ materially from those included in any
forward-looking statements it makes. Any forward-looking statement
speaks only as of the date on which it is made. New risks and
uncertainties arise over time, and it is not possible for the
Company to predict those events or how they may affect it. Except
as required by law, the Company is not obligated to, and does not
intend to, update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. You
should not place undue reliance on these forward-looking
statements, as events described or implied in such statements may
not occur.
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SOURCE Monmouth Real Estate Investment Corporation