Grubb & Ellis Completes $90 Million Preferred Equity Transaction

Grubb & Ellis Company (NYSE: GBE) today announced the completion of its $90 million offering of 900,000 shares of a new issuance of a 12 percent cumulative participating perpetual convertible preferred stock.

Grubb & Ellis estimates that the proceeds from the offering were approximately $85 million after deducting estimated offering expenses and giving effect to the conversion of the $5 million of subordinated debt provided by an affiliate of the company's largest stockholder. The company intends to use the proceeds to repay in full its credit facility at the agreed reduced principal amount equal to approximately 65 percent of the principal amount outstanding under such facility. The balance of the offering proceeds will be used for general working capital purposes.

"We are extremely pleased with the outcome of this transaction," said C. Michael Kojaian, the company's chairman. "I have every confidence that Grubb & Ellis has the right strategy and management team in place to deliver on its long-term objective of growing the company while continuing to provide clients with comprehensive solutions to their real estate needs."