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Investing

CapLease Raises Preferred Capital… At 8.375% (LSE)

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By Jon C. Ogg Updated Published
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CapLease, Inc. (NYSE: LSE) is out raising what oon the surface appears to be expensive capital.  The commercial real estate investment trust has priced an underwritten public offering of 2,000,000 shares of 8.375% Series B Cumulative Redeemable Preferred Stock.  The public offering price is the typical $25.00 per share that you see on preferred offerings so frequently, but that rate just feels and looks higher than what many offerings have gone out at considering the current environment when you consider that these preferred offerings generally have a higher ranking in the capital structure than the common shares.

CapLease intends to file an application to list the Series B preferred shares so that they trade independently from the common shares.  As far as how the $50 million compares to the overall size of CapLease, the trust’s market value of its common stock is listed as only $276 million according to the data on Yahoo! Finance.

This REIT generally finances and invests in commercial real estate that is net leased primarily to single tenants with investment grade or near investment grade credit ratings.  The trust noted that it intends to use the net proceeds (approximately $48.3 million with consideration of an overallotment) to fund future acquisitions and for other general corporate purposes.

Wells Fargo Securities and Citigroup Global Markets were the joint book-runners; co-managers were Stifel Nicolaus & Company and Keefe Bruyette & Woods.

JON C. OGG

Contact [email protected] for any questions or corrections.

Disclaimer: Energy Exploration Technologies, Inc. ("EnergyX") has engaged 24/7 Wall St to publish this communication in connection with EnergyX's ongoing Regulation A offering. 24/7 Wall St has been paid in cash and may receive additional compensation. 24/7 Wall St and/or its affiliates do not currently hold securities of EnergyX.

This compensation and any current or future ownership interest could create a conflict of interest. Please consider this disclosure alongside EnergyX's offering materials. EnergyX's Regulation A offering has been qualified by the SEC. Offers and sales may be made only by means of the qualified offering circular. Before investing, carefully review the offering circular, including the risk factors. The offering circular is available at invest.energyx.com/.

Comparisons to other companies are for informational purposes only and should not imply similar results. Past performance is not indicative of future results. Market shortfall are forward‑looking estimates and are subject to substantial uncertainty. Investments in private placements, and start-up investments in particular, are long-term, illiquid, speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in start-ups

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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