Entertainment Properties Trust (NYSE:EPR) (the "Company") announced today that it has priced an underwritten public offering of 5,000,000 shares of its 6.625% Series F Cumulative Redeemable Preferred Shares (the "Series F Preferred Shares") at $25.00 per share. The offering is expected to close on October 12, 2012, subject to the satisfaction or waiver of customary closing conditions. Distributions on the Series F Preferred Shares will be paid quarterly in arrears on or about January 15, April 15, July 15 and October 15 of each year, commencing January 15, 2013, at a rate per annum of 6.625% of the liquidation value of $25.00 per share (equivalent to $1.65625 per share per annum).
The Company has applied to list the Series F Preferred Shares on the New York Stock Exchange under the symbol "EPR PrF", subject to official notice of issuance. The Company expects that trading will commence within 30 days after initial delivery of the Series F Preferred Shares.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC served as joint book-running managers of the offering. Net proceeds of the offering are expected to be $120.7 million, after deducting the underwriting discount and estimated offering expenses.
The Company intends to use the net proceeds of the offering to redeem all of the Company's 7.375% Series D Cumulative Redeemable Preferred Shares at an aggregate redemption price of approximately $115.8 million (which includes approximately $800,000 of accrued and unpaid distributions at the anticipated redemption date) plus costs and expenses associated with the redemption. The Company intends to use the remaining net proceeds for general business purposes, which may include funding the acquisition, development or financing of properties. Pending application of any portion of the net proceeds to such uses, the Company may invest such proceeds in interest-bearing accounts or short-term interest-bearing securities which are consistent with the Company's qualification as a real estate investment trust.