Giant triple net lease REIT VEREIT (VER) has announced that they will be redeeming 6 million shares of the 6.70% perpetual preferred (VER-F) issue.
Last week the company sold some debt and at the time stated they would likely redeem more of this giant sized preferred issue.
Bob-in-DE caught the announcement today that they will redeem 6 million shares for $25 plus accrued dividends on 7/22/2020. The 6 million shares is around 19% of the total currently outstanding–this will leave around 24.9 million shares yet outstanding.
VER-F is a monthly payer and goes ex-dividend on 6/30/2020 for 13.9 cents for payment 7/15. There will be an additional ‘stub’ dividend payment for 7/15/2020 to 7/21/2020 of 3.3 cents on the redeemed shares.
VER-F is now trading around $25.05.
It is likely that in the next few days you will see around 19% of your shares segregated in your brokerage account if you are a holder. NOTE I hold a full position of this one.