FREEHOLD, N.J., April 29, 2019 /PRNewswire/ -- UMH
Properties, Inc. (NYSE: UMH) today announced the closing of its
sale of 4,000,000 shares of its 6.75% Series C Cumulative
Redeemable Preferred Stock (the "Series C Preferred Stock"), in its
previously announced underwritten public offering at an offering
price of $25.00 per share. The
closing included 400,000 shares of Series C Preferred Stock that
were purchased by the underwriters pursuant to the exercise in full
of their overallotment option. The shares of Series C Preferred
Stock that were sold form a single series with, have the same terms
as, and will vote as a single class with, the 5,750,000 outstanding
shares of Series C Preferred Stock issued in July 2017 and rank on a parity with the Company's
outstanding 8.0% Series B Cumulative Redeemable Preferred Stock and
its outstanding 6.375% Series D Cumulative Redeemable Preferred
Stock. The Series C Preferred Stock is listed on The New York
Stock Exchange under the symbol "UMH PRC." The Series C
Preferred Stock has a $25.00
liquidation value per share.
The Company received net proceeds from the sale of the 4,000,000
shares, after deducting the underwriting discount and other
estimated offering expenses, of approximately $96.6 million and plans to use the net proceeds
of the offering for general corporate purposes, which may include
the purchase of manufactured homes for sale or lease to customers,
expansion of its existing communities, potential acquisitions of
additional properties and possible repayment of indebtedness on a
short-term basis.
The joint bookrunning managers for the offering were BMO Capital
Markets Corp. and J.P. Morgan Securities, LLC. Co-managers for the
offering were B. Riley FBR, Inc., D.A. Davidson & Co., and
Janney Montgomery Scott, LLC.
UMH, a publicly-owned REIT, owns and operates 118 manufactured
home communities located in New
Jersey, New York,
Ohio, Pennsylvania, Tennessee, Indiana, Michigan and Maryland. In addition, the Company owns a
portfolio of REIT securities.
The Series C Preferred Stock was issued pursuant to a prospectus
supplement and accompanying prospectus under an effective shelf
registration statement on file with the Securities and Exchange
Commission. This communication shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of these securities in any state or other jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
the registration or qualification under the securities laws of any
such state or other jurisdiction. Any offer of the securities will
be made only by means of a prospectus, forming part of the
effective registration statement, the applicable preliminary
prospectus supplement and other related documents. Copies of the
prospectus and the prospectus supplement, subject to completion,
relating to these securities may be obtained from BMO Capital
Markets Corp. You should direct any requests to BMO Capital Markets
Corp., Attention: Syndicate Department, 3 Times Square, 25th Floor,
New York, New York, 10036 or by
telephone at (800) 414-3627 or by email at bmoprospectus@bmo.com or
to J.P. Morgan Securities LLC, Attention: Investment Grade
Syndicate Desk, 383 Madison Avenue, New
York, New York, 10179 or by telephone at (212)
834-4533. You may also obtain a copy of the prospectus and
the prospectus supplement, subject to completion, and other
documents the Company has filed with the Securities and Exchange
Commission for free by visiting the Commission's Web site at
http://www.sec.gov.
Certain statements included in this press release which are not
historical facts may be deemed forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Although
the Company believes the expectations reflected in any
forward-looking statements are based on reasonable assumptions, the
Company can provide no assurance those expectations will be
achieved. These risks include, among others, changes in the
general economic climate, increased competition in the geographic
areas in which the Company operates, changes in government laws and
regulations and the ability of the Company to continue to identify,
negotiate and acquire properties on terms favorable to the Company.
Additional information concerning these and other factors that
could cause actual results to differ materially from those
forward-looking statements is contained from time to time in the
Company's SEC filings, including, but not limited to, Item 1A. Risk
Factors in the Company's Annual Report on Form 10-K for the year
ended December 31, 2018. Copies of
each filing may be obtained from the Company or the SEC.
Consequently, such forward-looking statements should be regarded
solely as reflections of the Company's current operating plans and
estimates. Actual operating results may differ materially from what
is expressed or forecast in this press release. Except as otherwise
required by applicable securities law, the Company undertakes no
obligation to publicly release the results of any revisions to
these forward-looking statements that may be made to reflect events
or circumstances after the date these statements were made.
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SOURCE UMH Properties, Inc.