Glimcher Realty Trust Closes $100 Million Preferred Share Offering
COLUMBUS, Ohio--(BUSINESS WIRE)-- Glimcher Realty Trust (GRT) today closed the underwritten public offering of 4,000,000 of its 7.50% Series H Cumulative Redeemable Preferred Shares (the Series H Preferred Shares) with a liquidation preference of $25.00 per share, including 400,000 Series H Preferred Shares sold pursuant to the underwriters exercise of their overallotment option to purchase additional Series H Preferred Shares. The offering generated net proceeds to the Company of approximately $96.4 million, after deducting the underwriting discounts and commissions and estimated offering expenses payable by the Company.
The Company intends to use approximately $90 million of the net proceeds to redeem all 2,400,000 of Series F Cumulative Redeemable Preferred Shares as well as 1,200,000 of Series G Cumulative Redeemable Preferred Shares, and use the remainder of the proceeds to repay a portion of the amount outstanding under its credit facility. The Company has filed an application to list the Series H Preferred Shares on the New York Stock Exchange under the symbol GRTPRH. Trading of the Series H Preferred Shares on the New York Stock Exchange is expected to begin within 30 days after the initial issuance of the Series H Preferred Shares.
Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint book-running managers for the offering. The Huntington Investment Company, KeyBanc Capital Markets, Inc., Raymond James & Associates, Inc. and Stifel, Nicolaus & Company, Incorporated acted as co-managers for the offering.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The offering may be made only by means of a prospectus supplement and related prospectus. Copies of the prospectus supplement and related prospectus for this offering may be obtained by contacting Wells Fargo Securities, LLC, 1525 West W.T. Harris Blvd., NC0675, Charlotte, NC 28262, Attention: Capital Markets Client Support, telephone (800) 326-5897 or e-mail request to firstname.lastname@example.org; or Merrill Lynch, Pierce, Fenner & Smith Incorporated, 222 Broadway, 7th Floor, New York, NY 10038, Attention: Prospectus Department; telephone (800) 294-1322 or e-mail a request to email@example.com.
About Glimcher Realty Trust
Glimcher Realty Trust, a real estate investment trust, is a recognized leader in the ownership, management, acquisition and development of malls, which includes open-air centers, enclosed regional malls, as well as outlet centers. At June 30, 2012, GRT owned interests in and managed 28 properties with gross leasable area totaling approximately 21.6 million square feet, consisting of 25 malls (21 wholly owned and four partially owned through joint ventures) and three community centers (two wholly owned and one partially owned through a joint venture).
Glimcher Realty Trusts common shares are listed on the New York Stock Exchange under the symbol GRT. Glimcher Realty Trusts Series F and Series G preferred shares are listed on the New York Stock Exchange under the symbols GRTPRF and GRTPRG, respectively. Glimcher Realty Trust is a component of both the Russell 2000® Index, representing small cap stocks, and the Russell 3000® Index, representing the broader market. Glimcher ® is a registered trademark of Glimcher Realty Trust.
Forward Looking Statements
This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. Risks and other factors that might cause differences, some of which could be material, include, but are not limited to, economic and market conditions, tenant bankruptcies, bankruptcies of joint venture (JV) partners, rejection of leases by tenants in bankruptcy, financing and development risks, construction and lease-up delays, cost overruns, the level and volatility of interest rates, the rate of revenue increases versus expense increases, the financial stability of tenants within the retail industry, the failure of Glimcher to make additional investments in regional mall properties and redevelopment of properties, the failure to acquire properties as and when anticipated, the failure to fully recover tenant obligations for CAM, taxes and other property expenses, failure to comply or remain in compliance with covenants in the Companys debt instruments, failure or inability to exercise available extension options on debt instruments, failure of Glimcher to qualify as a real estate investment trust, termination of existing JV arrangements, conflicts of interest with the Companys existing JV partners, failure to achieve projected returns on development properties, the failure to sell malls and community centers and the failure to sell such properties when anticipated, the failure to achieve estimated sales prices and proceeds from the sale of malls, increases in impairment charges, additional impairment charges, as well as other risks listed in this news release and from time to time in Glimchers reports filed with the Securities and Exchange Commission or otherwise publicly disseminated by Glimcher.
Glimcher Realty Trust
Lisa A. Indest, SVP, Finance and Accounting, 614-887-5844
Source: Glimcher Realty TrustCopyright Business Wire 2012