Glimcher Realty Trust, Columbus, Ohio, has priced its 13 million share public offering below the amount the stock traded at when the markets closed Wednesday afternoon.
The offering has been priced at $8.30 per share. On Wednesday, Glimcher closed at $8.77 per share. In late morning trading on Thursday, the stock price was down over 2.6% from the previous day close, at $8.54 per share.
Proceeds are to be used to reduce the outstanding principal of its corporate line of credit. Once the amount outstanding is repaid, Glimcher said it expects to make new draws on the credit facility from time to time for funds for the acquisition of additional properties, plus the refinancing, redevelopment or development of existing or new properties.
This will include the repayment of the existing mortgage financings related to Morgantown Mall in Morgantown, W.Va., Northtown Mall in Blaine, Minn. and Polaris Lifestyle Center in Columbus, in connection with the pledge of those properties as collateral under the company’s proposed amended credit facility. Further borrowings under the line will be for general working capital and other corporate purposes.
Goldman, Sachs & Co., B of A Merrill Lynch, KeyBanc Capital Markets Inc. and Wells Fargo Securities LLC acted as the joint bookrunning managers for the offering and Commerz Markets LLC, The Huntington Investment Company, Piper Jaffray & Co., PNC Capital Markets LLC and RBS Securities Inc. acted as co-managers for the offering. Glimcher has granted the underwriters a 30-day option to purchase 1.950 million additional common shares.
