Back to top

Analyst Blog

Recently, Taubman Centers Inc. (TCO - Analyst Report) disclosed the pricing of $150 million of 6.25% Series K cumulative redeemable Preferred Stock. The move comes as part of its efforts to raise capital for decreasing its outstanding borrowings.

Particularly, Taubman announced the pricing of an underwritten public offering of 6,000,000 shares of 6.25% Series K Cumulative Redeemable Preferred Stock at a price of $25.00 per share. Alongside, underwriters have been granted an option to purchase up to an additional 900,000 shares within 30 days exclusively to cover over-allotments, if any.

The move is a strategic fit as it would add to Taubman’s financial flexibility and help lower its borrowings under its $1.165 billion revolving lines of credit. This, in turn, would reduce its interest expenses.

The joint book-running managers for the offering, which is expected to close on Mar 15, 2013, are Morgan Stanley (MS - Analyst Report) and Wells Fargo Securities of Wells Fargo & Company (WFC - Analyst Report). The joint lead managers for the offering are JPMorgan Chase & Co. (JPM - Analyst Report) and Jefferies. Notably, on or after Mar 15, 2018, Taubman has the option to redeem the Series K cumulative redeemable Preferred Stock at a price of $25.00 per share.

Mich.-based Taubman Centers Inc. is a real estate investment trust (REIT), which is engaged in the ownership, management and/or leasing of 27 regional, super-regional and outlet shopping centers in the U.S. and Asia.

Taubman has a solid portfolio of the best-in-class retail malls that generates robust mall tenant sales. Acquisitions of favorably situated assets are expected to be accretive to its top line going forward. Also, the company’s capital moves are encouraging.

Moreover, last month, Taubman came up with an impressive fourth quarter and full year 2012 earnings results, primarily driven by increase in rents and robust occupancy levels.

Taubman currently retains a Zacks Rank #2 (Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
THE PANTRY… PTRY 21.23 +3.11%
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.07 +2.34%
WILLDAN GRO… WLDN 11.77 +2.13%
CLAYTON WIL… CWEI 117.50 +1.95%