Issuer: | Taubman Centers, Inc. |
Security: | 6.25% Series K Cumulative Redeemable Preferred Stock |
Number of Shares: | 6,000,000 (6,900,000 shares if the underwriters' over-allotment option is exercised in full) |
Public Offering Price: | $25.00 per share; $150,000,000 total (not including the underwriters' option to purchase additional shares) |
Underwriting Discounts and Commissions: | $0.7875 per share; $4,725,000 total (not including the underwriters' option to purchase additional shares) |
Maturity Date: | Perpetual (unless redeemed by the Issuer on or after March 15, 2018, pursuant to its special optional redemption right, pursuant to its REIT qualification optional redemption right or converted by a holder in connection with a Change of Control) |
Trade Date: | March 11, 2013 |
Settlement Date: | March 15, 2013 (T+4) |
Liquidation Preference: | $25.00, plus accrued and unpaid dividends |
Dividend Rate: | 6.25% per annum of the $25.00 per share liquidation preference (equivalent to $1.5625 per annum per share), accruing from March 15, 2013 |
Dividend Payment Dates: | Quarterly on or about the last day of March, June, September and December of each year, beginning on June 28, 2013, with dividends accruing from, and including, March 15, 2013 to June 30, 2013. |
Optional Redemption: | The Issuer may not redeem the Series K preferred stock prior to March 15, 2018, except pursuant to the REIT qualification optional redemption provision described below under “REIT Qualification Optional Redemption” and the special optional redemption provision described below under “Special Optional Redemption.” |
Special Optional Redemption: | Upon the occurrence of a “Change of Control”, the Issuer may, at its option, redeem the Series K preferred stock, in whole or in part within 120 days after the first date on which such Change of Control occurred, by paying $25.00 per share, plus any accrued and unpaid dividends to, but not including, the date of redemption. If, prior to the “Change of Control Conversion Date”, the Issuer exercises any of its redemption rights relating to the Series K preferred stock (whether the optional redemption right, the special optional redemption right or the REIT qualification optional redemption right), the holders of Series K preferred stock will not have the conversion rights described below. |
REIT Qualification Optional Redemption: | If the redemption of a holder's Series K preferred stock is required to prevent a violation of the Issuer's “Ownership Limit”, then the Issuer may, at its option, redeem the Series K preferred stock of such holder, in such amount required to comply with the Ownership Limit, by paying $25.00 per share, plus any accrued and unpaid dividends to, but not including, the date of redemption. |
Change of Control: | A “Change of Control” is when, after the original issuance of the Series K preferred stock, the following have occurred and are continuing: |
• | the acquisition by any person, including any syndicate or group deemed to be a “person” under Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, of beneficial ownership, directly or indirectly, through a purchase, merger or other acquisition transaction or series of purchases, mergers or other acquisition transactions of stock of the Issuer entitling that person to exercise more than 50% of the total voting power of all stock of the Issuer entitled to vote generally in the election of the Issuer's directors (except that such person will be deemed to have beneficial ownership of all securities that such person has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); and |
• | following the closing of any transaction referred to in the bullet point above, neither the Issuer nor the acquiring or surviving entity has a class of common securities (or ADRs representing such securities) listed on the New York Stock Exchange, or the NYSE, the NYSE MKT LLC, or the NYSE MKT, or the NASDAQ Stock Market, or NASDAQ, or listed or quoted on an exchange or quotation system that is a successor to the NYSE, the NYSE MKT or NASDAQ. |
Conversion Rights: | Upon the occurrence of a Change of Control, each holder of Series K preferred stock will have the right (unless, prior to the Change of Control Conversion Date, the Issuer has provided or provides notice of its election to redeem the Series K preferred stock) to convert some or all of the Series K preferred stock held by such holder on the Change of Control Conversion Date into a number of shares of the Issuer's common stock per share of Series K preferred stock to be converted equal to the lesser of: |
• | the quotient obtained by dividing (i) the sum of the $25.00 liquidation preference plus the amount of any accrued and unpaid dividends to, but not including, the Change of Control Conversion Date (unless the Change of Control Conversion Date is after a record date for a Series K preferred stock dividend payment and prior to the corresponding Series K preferred stock dividend payment date, in which case no additional amount for such accrued and unpaid dividend will be included in this sum) by (ii) the Common Stock Price; and |
• | 0.64218 (i.e., the Share Cap), subject to certain adjustments; |
CUSIP/ISIN: | 876664 707 / US8766647072 |
Joint Book-Running Managers: | Morgan Stanley & Co. LLC |
Joint Lead Managers: | J.P. Morgan Securities LLC |
Listing: | The Issuer intends to file an application to list the Series K preferred stock on the NYSE under the symbol “TCO Pr K”. If the application is approved, trading of the Series K preferred stock on the NYSE is expected to commence within 30 days after the date of initial delivery of the Series K preferred stock. |