As we all knew was coming, REIT VEREIT (VER) has announced the redemption of 8 million shares of the VER-F 6.70% perpetual preferred.
The company had previously redeemed 4 million shares so now in total they have redeemed 12 million shares of almost 43 million outstanding–so we still have 31 million shares trading.
The shares being called represent about 20.58% of all shares outstanding and will be redeemed at $25.028/share which represents liquidation plus accrued. A full dividend of about 14 cents will be paid to holders on 12/15/2019.
So for those that were wondering – the shares will be redeemed on a pro rata basis, so you will see 20.58% of your shares get segregated in your account and on the call date (12/21) they will disappear and cash will be received.
VER-F shares are now trading at $25.26 after falling as low as $25.07 yesterday. I know many folks took the opportunity to buy more shares (I bought 300 more) since the call risk had left the price. My purchase came as one of the readers pointed out a partial call instead of a full redemption–initially I had missed the partial call note.
Thanks to Dave for posting the company press release late today. The press release can be read here.