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Preferred Apartment Communities Announces $40.0 Million Private Placement





ATLANTA, Jan. 17, 2013 /PRNewswire/ -- Preferred Apartment Communities, Inc. (NYSE MKT: APTS) ("PAC" or the "Company"), a Maryland corporation, announced today that it has entered into definitive purchase agreements with institutional accredited investors and closed a private placement transaction raising gross proceeds of $40.0 million.

Under the terms of this transaction, PAC issued 40,000 shares of its Series B Mandatorily Convertible Cumulative Perpetual Preferred Stock (the "Series B Preferred Stock") at a purchase price of $1,000 per share. The Series B Preferred Stock will automatically be converted into shares of common stock of the Company following, and subject to, stockholder approval. The shares of Series B Preferred Stock have a conversion price of $7.00 per common share (subject to adjustment). The Company has agreed to file a resale registration statement by no later than April 15, 2013 for the purpose of registering the resale of the underlying shares of common stock into which the shares of Series B Preferred Stock are convertible following stockholder approval. The Company expects to use the net offering proceeds to acquire multifamily residential properties.

John A. Williams, Chairman of the Board and Chief Executive Officer of PAC, said "We are very pleased with the successful placement of our Series B Preferred Stock, which we believe will allow us to continue our positive growth, financial results and operations."

Wunderlich Securities, Inc. and Compass Point Research & Trading, LLC acted as the lead placements agents for the private placement.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities sold in this private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States in the absence of an effective registration statement or exemption from registration requirements.

About Preferred Apartment Communities, Inc.

Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.  As part of our business strategy, we may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and we may make mezzanine loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the construction of multifamily communities and other properties.  As a secondary strategy, we also may acquire or originate senior mortgage loans, subordinate loans or mezzanine debt secured by interests in multifamily properties, membership or partnership interests in multifamily properties and other multifamily related assets and invest not more than 10% of our total assets in other real estate related investments, as determined by our manager as appropriate for us.  Preferred Apartment Communities, Inc. has elected to be taxed as a real estate investment trust under the Internal Revenue Code of 1986, as amended, commencing with its tax year ended December 31, 2011.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. As a general matter, forward-looking statements reflect our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. These statements may be identified by the use of forward-looking terminology such as "may", "will", "expects", "plans", "estimates", "anticipates", "projects", "intends", "believes", "outlook" and similar expressions. 

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