PHILADELPHIA, Sept. 11, 2017 /PRNewswire/ -- Pennsylvania Real
Estate Investment Trust (the "Company") (NYSE: PEI) today closed
the previously announced underwriting public offering of 4,800,000
of its 6.875% Series D Cumulative Redeemable Perpetual Preferred
Shares (the "Series D Preferred Shares"), with a liquidation
preference of $25.00 per share.
The estimated net proceeds from the offering are expected to be
approximately $115.8 million,
after deducting the underwriting discount and estimated
expenses.
The Company intends to use the net proceeds from this offering
to redeem all of the Company's outstanding Series A Preferred
Shares with an aggregate liquidation preference of approximately
$115.0 million and to use the
remaining proceeds for general corporate purposes. The New York
Stock Exchange has approved the listing of the Series D Preferred
Shares under the symbol "PEIPrD". Trading of the Series D Preferred
Shares on the New York Stock Exchange is expected to begin on
September 13, 2017.
Wells Fargo Securities, LLC, Citigroup Global Markets Inc.,
Jefferies LLC, J.P. Morgan Securities LLC and Stifel, Nicolaus
& Company, Incorporated acted as joint book-running managers
for the offering, and BB&T Capital Markets, a division of
BB&T Securities, LLC, Canaccord Genuity Inc., Capital One
Securities, Inc., MUFG Securities Americas Inc., TD Securities
(USA) LLC and U.S. Bancorp
Investments, Inc. acted as co-managers for the offering.
The offering is being made pursuant to an effective shelf
registration statement previously filed with the Securities and
Exchange Commission on December 22,
2014. The offering may be made only by means of a prospectus
supplement and related prospectus, which were filed with the SEC
and are available on the SEC's website www.sec.gov. Copies of
the prospectus supplement and related prospectus for this offering
may be obtained by contacting Wells Fargo Securities, LLC at
1-800-645-3751 or wfscustomerservice@wellsfargo.com.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About PREIT
PREIT (NYSE:PEI) is a publicly traded real estate investment
trust that owns and manages quality properties in compelling
markets. PREIT's robust portfolio of carefully curated retail and
lifestyle offerings mixed with destination dining and entertainment
experiences are located primarily in the densely-populated eastern
U.S. with concentrations in the mid-Atlantic's top MSAs. Since
2012, the company has driven a transformation guided by an emphasis
on portfolio quality and balance sheet strength driven by
disciplined capital expenditures. Additional information is
available at www.preit.com or on Twitter or LinkedIn.
Forward-Looking Statements
This press release, together with other statements and
information publicly disseminated by us, contain certain
"forward-looking statements" within the meaning of the federal
securities laws. Forward-looking statements relate to expectations,
beliefs, projections, future plans, strategies, anticipated events,
trends and other matters that are not historical facts. When used,
the words "anticipate," "believe," "estimate," "target," "goal,"
"expect," "intend," "may," "plan," "project," "result," "should,"
"will," and similar expressions, which do not relate solely to
historical matters, are intended to identify forward looking
statements. We caution that any forward looking statements
presented are based on management's beliefs and assumptions made
by, and currently available to, management. These forward-looking
statements reflect our current views about future events,
achievements or results and are subject to risks, uncertainties and
changes in circumstances that might cause future events,
achievements or results to differ materially from those expressed
or implied by the forward-looking statements. In particular, our
business might be materially and adversely affected by
uncertainties affecting real estate businesses generally as well as
the following, among other factors: changes in the retail and real
estate industries, including consolidation and store closings,
particularly among anchor tenants; our ability to maintain and
increase property occupancy, sales and rental rates, in light of
the relatively high number of leases that have expired or are
expiring in the next two years; increases in operating costs
that cannot be passed on to tenants; current economic conditions
and the state of employment growth and consumer confidence and
spending, and the corresponding effects on tenant business
performance, prospects, solvency and leasing decisions and on our
cash flows, and the value and potential impairment of our
properties; the effects of online shopping and other uses of
technology on our retail tenants; risks related to our
development and redevelopment activities; acts of violence at
malls, including our properties, or at other similar spaces, and
the potential effect on traffic and sales; our ability to identify
and execute on suitable acquisition opportunities and to integrate
acquired properties into our portfolio; our partnerships and joint
ventures with third parties to acquire or develop properties;
concentration of our properties in the Mid-Atlantic region; changes
in local market conditions, such as the supply of or demand for
retail space, or other competitive factors; changes to our
corporate management team and any resulting modifications to our
business strategies; our ability to sell properties that we seek to
dispose of or our ability to obtain prices we seek; potential
losses on impairment of certain long-lived assets, such as real
estate, or of intangible assets, such as goodwill, including such
losses that we might be required to record in connection with any
dispositions of assets; our substantial debt and liquidation
preference of our preferred shares and our high leverage ratio;
constraining leverage, unencumbered debt yield, interest and
tangible net worth covenants under our principal credit agreements;
our ability to refinance our existing indebtedness when it matures,
on favorable terms or at all; our ability to raise capital,
including through joint ventures or other partnerships, through
sales of properties or interests in properties, through the
issuance of equity or equity-related securities if market
conditions are favorable, or through other actions; our short- and
long-term liquidity position; potential dilution from any capital
raising transactions or other equity issuances; and general
economic, financial and political conditions, including credit and
capital market conditions, changes in interest rates or
unemployment. The risks included here are non-exhaustive, and there
are additional factors that might cause future events, achievements
or results to differ materially from those expressed or implied by
our forward-looking statements, including those discussed in the
section entitled "Risk Factors" in the prospectus supplement, the
accompanying prospectus and the documents incorporated by reference
therein, including our Annual Report on Form 10-K for the year
ended December 31, 2016 and our
Quarterly Reports on Form 10-Q for the quarters ended March 31, 2017 and June
30, 2017. We do not intend to update or revise any
forward-looking statements to reflect new information, future
events or otherwise.
CONTACT: AT THE COMPANY
Robert McCadden
EVP & CFO
(215) 875-0735
Heather Crowell
SVP, Corporate Communications and Investor Relations
(215) 454-1241
heather.crowell@preit.com
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SOURCE PREIT