Gramercy Property Trust Announces Pricing of Upsized Public Offering of 40M Shares of Common Stock at $4.98
Gramercy Property Trust Inc. (NYSE: GPT), a real estate investment trust, announced today the pricing of the public offering of 40,000,000 shares of its common stock at a public offering price of $4.98 per share. In addition, the underwriters of the offering have a 30-day option to purchase up to an additional 6,000,000 shares of the Company's common stock. The offering was upsized from the previously announced offering of 34,000,000 shares. The offering is subject to customary closing conditions and is expected to close on May 19, 2014.
The Company intends to use a portion of the net proceeds of the offering to fund the cash purchase price for the previously announced acquisition of the 50% joint venture interest held by affiliates of Garrison Investment Group, L.P. The Company currently owns the remaining 50% interest in the joint venture. The remaining proceeds are expected to be used for general corporate purposes, including acquisitions of target assets consistent with the Company's investment strategies and for working capital purposes.
Morgan Stanley, BofA Merrill Lynch and J.P. Morgan are acting as joint book-running managers for the offering. RBC Capital Markets is acting as senior co-manager and JMP Securities, Ladenburg Thalmann & Co. Inc., Compass Point, BNY Mellon Capital Markets, LLC and CJS Securities, Inc. are acting as co-managers.
The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (“SEC”). The offering is being made only by means of a prospectus supplement and the accompanying prospectus, copies of which may be obtained by contacting: Morgan Stanley & Co. LLC, 180 Varick Street, New York, New York 10014, Attention: Prospectus Department, telephone: (866) 718-1649; BofA Merrill Lynch, 222 Broadway, New York, NY 10038, Attention: Prospectus Department, email: email@example.com; or J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or by calling 1-866-803-9204. These documents will also be filed with the SEC and will be available at the SEC's website at http://www.sec.gov.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities, nor shall there be any sale of these securities, in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Gramercy Property Trust
Gramercy Property Trust Inc. is a fully-integrated, self-managed commercial real estate investment company focused on acquiring and managing income-producing industrial and office properties net leased to high quality tenants in major markets throughout the United States. The Company also operates an asset management business that manages for third parties, including our joint venture partners, commercial real estate assets.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Company's present expectations, but these statements are not guaranteed to occur. For example, the fact that the offering described above has priced may imply that the offering will close, but closing is subject to conditions customary in transactions of this type and may be delayed or may not occur at all. In addition, the fact that the underwriters have an option to purchase additional shares may imply that this option will be exercised. However, the underwriters will not be under any obligation to exercise any such option, or any portion of it, and they may not do so. Investors should not place undue reliance upon forward-looking statements.
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