UMH Properties, Inc. (NYSE:UMH) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry Into a Material Definitive Agreement.
On January 17, 2018, UMH Properties, Inc. (the "Company") entered into an Underwriting Agreement (the "Underwriting Agreement") with BMO Capital Markets Corp. and Stifel, Nicolaus & Company, Incorporated, as representatives of the several underwriters listed on Schedule I thereto (collectively, the "Underwriters") to which the Company agreed to issue and sell 2,000,000 shares (the "Shares") of the Company's new 6.375% Series D Cumulative Redeemable Preferred Stock, par value $0.10 per share, with a liquidation preference of $25.00 per share (the "Series D Preferred Stock"), in an underwritten public offering. to the Underwriting Agreement, the Company also granted the Underwriters a 30-day overallotment option to purchase up to an additional 300,000 shares of the Company's Series D Preferred Stock. The Company's total net proceeds from the Shares, after deducting the underwriting discount and other estimated offering expenses, are expected to be approximately $48.1 million. The offering is expected to close on or about January 22, 2018, subject to satisfaction of customary closing conditions. The Company intends to use the net proceeds for general corporate purposes, which may include purchase of manufactured homes for sale or lease to customers, expansion of the Company's existing communities, potential acquisitions of additional properties and possible repayment of indebtedness on a short-term basis.
The shares of Series D Preferred Stock are being offered and sold to the Company's prospectus supplement dated January 17, 2018 (the "Prospectus Supplement") which supplements the Company's prospectus filed with the Securities and Exchange Commission (the "SEC") to the Company's Registration Statement on Form S-3 (File No. 333-219118), filed with the SEC on June 30, 2017, and declared effective on July 12, 2017 (the "Registration Statement").The Series D Preferred Stock will rank on a parity with the 8.0% Series B Cumulative Redeemable Preferred Stock, par value $0.10 per share (the "Series B Preferred Stock"), of which 3,801,200 shares are currently outstanding, and the 6.75% Series C Cumulative Redeemable Preferred Stock, par value $0.10 per share (the "Series C Preferred Stock"), of which 5,750,000 shares are currently outstanding, with respect to dividend rights and rights upon liquidation, dissolution or winding up.The Series D Preferred Stock is described in the Company's Registration Statement and the Prospectus Supplement.
The foregoing summary of the Underwriting Agreement is only a brief description of certain terms therein, does not purport to be a complete description of the rights and obligations of the parties thereunder, and is qualified in its entirety by such agreement attached hereto.A copy of the Underwriting Agreement is attached hereto as Exhibit 1.1 and is incorporated by reference herein.
Item 3.03 Material Modifications to Rights of Security Holders.
Series D Preferred Stock: Reclassification of 2,300,000 Shares of Common Stock as Shares of Series D Preferred Stock
On January 19, 2018, the Company filed with the Department of Assessments and Taxation of the State of Maryland Articles Supplementary (the "Articles Supplementary") (i) setting forth the rights, preferences and terms of the Series D Preferred Stock and (ii) reclassifying and designating 2,300,000 shares of the Company's authorized and unissued shares of the Company's authorized shares of common stock, par value $0.10 per share ("Common Stock") as shares of Series D Preferred Stock.The reclassification decreased the number of shares classified as Common Stock from 113,663,800 shares immediately prior to the reclassification to 111,363,800 shares immediately after the reclassification.The foregoing description of the Articles Supplementary is qualified in its entirety by reference to the Articles Supplementary, a copy of which is filed as Exhibit 3.1 to this Form 8-K and incorporated herein by reference.
After giving effect to the filing of the Articles Supplementary on January 19, 2018, the authorized capital stock of the Company consists of 126,413,800 shares, classified as 111,363,800 shares of Common Stock, 4,000,000 shares of Series B Preferred Stock, 5,750,000 shares of Series C Preferred Stock, 2,300,000 shares of Series D Preferred stock and 3,000,000 shares of excess stock, par value $0.10 per share ("Excess Stock").
The foregoing description of the Series D Preferred Stock is qualified in its entirety by reference to the Articles Supplementary, a copy of which is filed as Exhibit 3.1 to this Form 8-K and incorporated herein by reference.
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
The information set forth in Item 3.03 above with respect to the Articles Supplementary is incorporated in this Item 5.03 in its entirety.
Item 7.01 FD Disclosure.
The Company issued a press release concerning the offering of the Series D Preferred Stock on January 18, 2018.This press release is attached as Exhibit 99.1 hereto and is incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits.
UMH PROPERTIES, INC. ExhibitEX-1.1 2 p18-0010_ex11.htm UNDERWRITING AGREEMENT DATED JANUARY 17,…To view the full exhibit click here
About UMH Properties, Inc. (NYSE:UMH)
UMH Properties, Inc. operates as a real estate investment trust (REIT). The Company’s primary business is the ownership and operation of manufactured home communities, including leasing manufactured home sites to private manufactured home owners. It also leases homes to residents, and through its REIT subsidiary, UMH Sales and Finance, Inc. (S&F), the Company sells and finances the sale of manufactured homes in its communities. The Company owns and operates approximately 100 manufactured home communities containing over 17,800 developed sites. The communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. Its focus is on real estate investments. The Company invests in rental homes and owns approximately 3,700 rental homes. It engages in the rental of manufactured homes primarily in areas where the communities have existing vacancies. The Company also has approximately 1,300 additional sites in various stages of engineering/construction.