Greystone Housing Impact Investors LP Issues 1,750,000 Series B Preferred Units
23 January 2024 - 8:15AM
Greystone Housing Impact Investors LP (NYSE: GHI) (the
“Partnership”) announced today that on January 19, 2024 the
Partnership executed an Exchange Agreement to issue 1,750,000
Series B Preferred Units representing limited partnership interests
in the Partnership (the “Series B Preferred Units”) to a financial
institution in exchange for 1,750,000 previously outstanding Series
A Preferred Units representing limited partnership interests in the
Partnership (the “Series A Preferred Units”) held by such financial
institution. There were no net proceeds or other cash consideration
paid to or from the Partnership as a result of the exchange
transaction. The stated value of the newly issued Series B
Preferred Units is $17,500,000. The Series B Preferred Units were
issued in accordance with the Partnership’s existing “shelf”
registration statement on Form S-4 (Reg. No. 333-275170) for the
exchange of up to 1,750,000 of previously issued Series A Preferred
Units.
The Series A Preferred Units and Series B
Preferred Units are non-cumulative, non-convertible, and non-voting
classes of limited partnership interests in the Partnership for
which the holder has an option to have the units redeemed on the
sixth anniversary of the acquisition date and each subsequent
anniversary thereafter. The Series A Preferred Units that were
exchanged were originally issued to the financial institution in
March 2016 and October 2017. The exchange transaction allows the
Partnership to retain the $17.5 million in proceeds from the
original issuance of the Series A Preferred Units and extends the
potential redemption date for this capital. The earliest potential
redemption date for the newly issued Series B Preferred Units is
January 2030, with certain exceptions.
“We are pleased that one of our original Series
A Preferred Unit investors extended their original investment
through their exchange, which provides non-dilutive, fixed-rate and
low cost institutional capital to execute on our strategy for the
benefit of our unitholders,” said Kenneth C. Rogozinski, Chief
Executive Officer of the Partnership. “This transaction represents
the first issuance of our Series B Preferred Units that provide an
attractive fixed annual distribution rate of 5.75% and certain
Community Reinvestment Act benefits to financial institutions.”
About Greystone Housing Impact Investors
LP
Greystone Housing Impact Investors LP was formed
in 1998 under the Delaware Revised Uniform Limited Partnership Act
for the primary purpose of acquiring, holding, selling and
otherwise dealing with a portfolio of mortgage revenue bonds which
have been issued to provide construction and/or permanent financing
for affordable multifamily, seniors and student housing properties.
The Partnership is pursuing a business strategy of acquiring
additional mortgage revenue bonds and other investments on a
leveraged basis. The Partnership expects and believes the interest
earned on these mortgage revenue bonds is excludable from gross
income for federal income tax purposes. The Partnership seeks to
achieve its investment growth strategy by investing in additional
mortgage revenue bonds and other investments as permitted by its
Second Amended and Restated Limited Partnership Agreement, dated
December 5, 2022, taking advantage of attractive financing
structures available in the securities market, and entering into
interest rate risk management instruments. Greystone Housing Impact
Investors LP press releases are available at
www.ghiinvestors.com.
Safe Harbor Statement
Information contained in this press release
contains “forward-looking statements,” which are based on current
expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual outcomes and results to
differ materially. These risks and uncertainties include, but are
not limited to, risks involving current maturities of our financing
arrangements and our ability to renew or refinance such maturities,
fluctuations in short-term interest rates, collateral valuations,
mortgage revenue bond investment valuations and overall economic
and credit market conditions. For a further list and description of
such risks, see the reports and other filings made by the
Partnership with the Securities and Exchange Commission, including
but not limited to, its Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are
urged to consider these factors carefully in evaluating the
forward-looking statements. The Partnership disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
CONTACT: Andy
GrierSenior Vice
President402-952-1235
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