Alexandria Real Estate Equities Prices 6.5 Million Public Offering

Alexandria Real Estate Equities, Inc. ARE revealed Thursday that it priced its 6.5 million public offering of its common stock at $101.00 per share in respect of its forward sale agreements disclosed by it earlier. Following this, the stock traded down by 3.3 percent. According to the company, it allowed the underwriters a thirty-day option to acquire a maximum of 0.975 million additional shares. Alexandria Real Estate said that the offering is expected to close on or before July 12, subject to customary closing conditions. While BofA Merrill Lynch, Citigroup, and J.P. Morgan were the joint book-running managers for the offering, Baird, BB&T Capital Markets, BNP PARIBAS, Barclays, Capital One Securities, Evercore ISI, Goldman, Sachs & Co., JMP Securities, Loop Capital Markets, PNC Capital Markets LLC, RBC Capital Markets, Scotiabank and SunTrust Robinson Humphrey acted as co-managers for the offering. Alexandria Real Estate said that it reached forward sale agreements with Bank of America, N.A., Citibank, N.A. and JPMorgan Chase Bank in respect to 6.5 million shares of its common stock or an aggregate of 7.475 million shares if the underwriters exercise their option to buy additional shares in full). The Company will not get any proceeds from the sale of shares of its common stock by the forward purchasers initially. The Company indicated that if any net proceeds are available upon the future settlement of the forward sale agreements, it would use to fund the pending acquisition of One Kendall Square, a 644,771 rentable square feet, seven-building collaborative science and technology campus. Following this, shares of the company traded 3.33 percent down at the time of writing this article on Thursday.