FREEHOLD, N.J., April 1, 2016 /PRNewswire/ -- UMH
Properties, Inc. (NYSE: UMH) (the "Company") announced the pricing
of a registered direct placement of 2,000,000 shares of its 8.0%
Series B Cumulative Redeemable Preferred Stock (the "Series B
Preferred Stock") at an offering price of $25.50 per share. The shares of Series B
Preferred Stock being offered will form a single series with, will
have the same terms as, and will vote as a single class with, the
1,801,200 outstanding shares of Series B Preferred Stock issued in
October 2015 and will rank on a
parity with the Company's outstanding 8.25% Series A Preferred
Stock (the "Series A Preferred Stock"), of which 3,663,800 shares
are currently outstanding. After giving effect to the
offering, the Company will have a total of 3,801,200 shares of
Series B Preferred Stock outstanding. The shares of Series B
Preferred Stock are listed on The New York Stock Exchange under the
symbol "UMH PRB." The Series B Preferred Stock has a
$25.00 liquidation value per
share.
The Company expects to receive net proceeds from the offering
before expenses of approximately $49.4
million and expects to close the transaction on or about
April 5, 2016. The Company
intends to use the proceeds from the offering for general corporate
purposes, which may include 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.
CSCA Capital Advisors LLC acted as lead placement agent for the
transaction. Weeden & Co. LLP will act as settlement
agent for the transaction.
UMH Properties, Inc., which was organized in 1968, is a public
equity REIT that owns and operates ninety-eight manufactured home
communities containing approximately 17,800 developed home
sites. These communities are located in New Jersey, New
York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. In addition, the
Company owns a portfolio of REIT securities.
The Series B Preferred Stock is being issued pursuant to a
prospectus supplement and accompanying prospectus under an
effective shelf registration statement filed 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 or offer to buy these securities in any
state or 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 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 supplement and
accompanying prospectus can be obtained by contacting: CSCA Capital
Advisors LLC, 800 Third Avenue, New York,
New York 10022, by phone at 212-446-9177, or by fax at
212-446-9181. You may also obtain a copy of the prospectus
and the prospectus supplement 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 of the
Company's Annual Report on Form 10-K for the year ended
December 31, 2015. 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.