Alexandria Real Estate Equities, Inc. Announces Closing Of Public Offering
PASADENA, California, January 8, 2018
Alexandria Real Estate Equities, Inc. announced today the closing of its previously announced underwritten public offering of 6,900,000 shares of the Company’s common stock at a public offering price of $123.50 per share, including the 900,000 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares of the Company’s common stock. In connection with the offering, the Company entered into forward sale agreements between the Company and each of Bank of America, N.A., JPMorgan Chase Bank, N.A., London Branch, and Citibank, N.A..
BofA Merrill Lynch, J.P. Morgan and Citigroup acted as the joint book-running managers for the offering. Evercore ISI, Goldman Sachs & Co. LLC, Mizuho Securities, RBC Capital Markets, Scotiabank, Wells Fargo Securities, Barclays, BB&T Capital Markets, BNP PARIBAS, BTIG, Capital One Securities, Fifth Third Securities, JMP Securities, Loop Capital Markets, PNC Capital Markets LLC, Ramirez & Co., Inc., SMBC Nikko, SunTrust Robinson Humphrey and TD Securities acted as co-managers for the offering.
The Company will not initially receive any proceeds from the sale of shares of its common stock by the forward purchasers (or their affiliates) in the offering. The Company expects to use the net proceeds, if any, it receives upon the future settlement of the forward sale agreements to fund pending acquisitions that the Company expects to complete in the near term and the construction of ongoing, highly leased development projects, with any remaining proceeds to be held for general working capital and other corporate purposes, including the reduction of the outstanding balance, if any, on the Company’s unsecured senior line of credit. Selling common stock through the forward sale agreements enables the Company to set the price of such shares upon the pricing of the offering (subject to certain adjustments) while delaying the issuance of such shares and the receipt of the net proceeds by the Company until the expected funding requirements described above have occurred.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is an urban office REIT uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and Research Triangle Park.