SAN DIEGO--(BUSINESS WIRE)--
Innovative Industrial Properties, Inc. (the "Company") (NYSE: IIPR)
announced today that its operating partnership subsidiary, IIP Operating
Partnership, LP (the "Operating Partnership"), priced a private offering
of $125 million aggregate principal amount of 3.75% Exchangeable Senior
Notes due 2024 (the "Notes"). The Operating Partnership has granted the
initial purchasers of the Notes a 30-day option to purchase up to an
additional $18.75 million aggregate principal amount of the Notes to
cover over-allotments, if any.
The Notes will be senior unsecured obligations of the Operating
Partnership, will be fully and unconditionally guaranteed by the Company
and the Operating Partnership's subsidiaries and will be exchangeable
for cash, shares of the Company's common stock, or a combination of cash
and shares of the Company's common stock, at the Operating Partnership's
option. The initial exchange rate for the Notes will be 14.37298 shares
of the Company's common stock per $1,000 principal amount of Notes and
the initial exchange price will be approximately $69.575 per share of
the Company's common stock. The initial exchange rate and initial
exchange price are subject to adjustment in certain circumstances. The
Notes will pay interest semiannually at a rate of 3.75% per annum and
will mature on February 21, 2024, unless earlier exchanged or
repurchased in accordance with their terms. The Operating Partnership
will not have the right to redeem the Notes prior to maturity, but may
be required to repurchase the Notes from holders under certain
circumstances.
The Operating Partnership intends to use the net proceeds from this
private offering to invest in specialized industrial real estate assets
that support the regulated cannabis cultivation and processing industry
that are consistent with its investment strategy, and for general
corporate purposes.
The Notes will be sold to qualified institutional buyers (as defined
under the Securities Act of 1933, as amended (the "Securities Act")) in
reliance on Rule 144A under the Securities Act. The Notes, the
guarantees and the common stock issuable upon exchange of the Notes have
not been registered under the Securities Act or any state securities
laws and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
This release shall not constitute an offer to sell or the solicitation
of an offer to buy the Notes, the guarantees or the common stock
issuable upon exchange of the Notes, nor shall it constitute an offer,
solicitation or sale in any jurisdiction in which such offer,
solicitation or sale is unlawful.
Forward-Looking Statements
This press release contains statements that the Company believes to
be "forward-looking statements" within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. All
statements other than historical facts, including, without limitation,
statements regarding the offering and the use of proceeds from the
offering, are forward-looking statements. When used in this press
release, words such as we "expect," "intend," "plan," "estimate,"
"anticipate," "believe" or "should" or the negative thereof or similar
terminology are generally intended to identify forward-looking
statements. Such forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from
those expressed in, or implied by, such statements.Investors
should not place undue reliance upon forward-looking statements. The
Company disclaims any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190215005247/en/
Catherine Hastings
Chief Financial Officer, Chief Accounting
Officer and Treasurer
Innovative Industrial Properties, Inc.
(858)
997-3332
Source: Innovative Industrial Properties, Inc.