Bluerock Residential Growth REIT Prices New Preferred Issue (Puttable After 10/2022)

Bluerock Residential Growth REIT has priced a new preferred offering with a number of interesting and attractive features.

Bluerock (ticker:BRG) is a apartment REIT which also does a bit of specialty financing for others.  They came public in March, 2014 and so far to date have performed excellently.

The new preferred offering has a tasty 8.25% yield and has the typical 5 year optional redemption feature as it is officially perpetual.

The features we like and essentially turn the issue from a perpetual issue to a ‘Term Preferred’ issue is that beginning in 2022 holders may ‘put’ the shares back to the company for $25/share plus accrued dividends. If you ‘put’ the shares the company has the option to pay you cash or common shares or any combination.

Additionally these shares have a penalty rate beginning in 2022 as well.  The coupon will rise to 10.25% in 2022 and by 50 cents/share on each anniversary date to a maximum coupon of 14%.

We need to do a bit more research on BRG, but believe we will be a buyer of this new preferred.

OTC Temp Ticker has not yet been announced.

Details of the issue are here.