Equity One, Inc. (NYSE:EQY) joined the ranks of REITs wanting to raise cash to pay down debt. The REIT priced 6.5 million shares of common stock at $14.30 per share. This will bring in about $89.0 million before expenses.
Citi, Morgan Stanley, Raymond James, and Wachovia were all listed as the joint book-running managers. Equity One granted the underwriter group a 30-day overallotment option for additional 975,000 shares
The cash proceeds will be used to pay down debt under its revolving credit facility and for other general corporate purposes, including future acquisitions, redevelopments and developments, debt repayments and for working capital. The offering was made under its effective shelf registration statement.
In addition and concurrently with the closing of the public offering, MGN America, LLC, an entity affiliated with Equity One’s largest stockholder, Gazit-Globe, Ltd., will purchase directly from the company approximately 2.45 million common shares at the same public offering price. This will bring in an additional amount of cash of approximately $35.0 million.
Shares of this REIT closed at $15.21 yesterday and are down 6% at $14.30 so far today.
Jon C. Ogg
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