Farm REIT Gladstone Land (LAND) will be selling a new term preferred stock. The proceeds will be used to redeem LANDP
Of course a ‘term’ preferred differs from most preferred issues as it will have a mandatory redemption date. In this case the issue will have a mandatory redemption date in 2026. In 2023 the issue will become optionally redeemable.
The new issue will pay dividends monthly.
The company currently has 2 preferred issues outstanding. LANDP is a 6.375% ‘term’ preferred which is currently optionally redeemable and has a mandatory redemption on 9/30/2021–the issue trades at a silly $26.21 right now. Investors are going to get a ‘wake up call’ this morning on the redemption.
There is also a 6% perpetual preferred (LANDO) outstanding which trades in the $25.05 area.
The preliminary prospectus can be read here. The ticker will be LANDM on the new issue.
Disclosure—I own the LANDO perpetual issue.
J was right on this one this morning