Alexandria Real Estate Equities Announces Pricing of Public Offering of 5.2M Shares of Series E Cumulative Redeemable Preferred Stock
Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced today that it has agreed to sell 5,200,000 shares of Series E Cumulative Redeemable Preferred Stock at a price of $25.00 per share in an underwritten public offering, resulting in gross proceeds of $130 million. Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., and RBC Capital Markets, LLC are acting as joint bookrunning managers, and Credit Suisse Securities LLC, J.P. Morgan Securities LLC, and Santander Investment Securities Inc. are acting as co-managers in connection with the public offering.
The offering is expected to close on or about March 15, 2012, subject to customary closing conditions. The Series E Cumulative Redeemable Preferred Stock will be entitled to receive dividends at a rate of 6.45% per year. Dividends will be payable quarterly in arrears on or about the 15th day of each of January, April, July and October of each year, commencing on July 15, 2012.
The Company estimates that the net proceeds of this offering, after deducting underwriting discounts and commissions and before deducting other estimated offering expenses, will be approximately $125.9 million. The Company intends to use the net proceeds from this offering to reduce the outstanding balance of its borrowings on its unsecured line of credit. Thereafter, the Company intends to borrow under its unsecured line of credit to fund the redemption of its outstanding 8.375% Series C Cumulative Redeemable Preferred Stock. The Company may also borrow from time to time under its unsecured line of credit to fund potential future acquisitions, to repay debt, or for general working capital and other corporate purposes, which may include the selective development or redevelopment of existing or new life science properties.
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