The proceeds from Inland Real Estate Corp.’s public offering of 9 million shares of common stock will be used to pay down the draw on a line of credit tapped to fund the buyout of its partner in the IN Retail Fund LLC joint venture.
The company priced the offering before the market opened Wednesday at $10.60 per share. On Tuesday, Inland's stock closed at $11.14 per share.
Wednesday morning it opened at $10.71, above the offering price but below the previous close. It ended the day at $10.35 per share.
Net proceeds are expected to be approximately $92 million; if the over-allotment option is exercised in full, they will be $105 million.
IN Retail Fund is a joint venture with the New York State Teachers’ Retirement System. Inland is buying out NYSTRS for $121 million in cash.
The venture owns 13
There is a unique feature in the buyout agreement. The closing of the transaction must occur by June 14. However, the purchase price will increase by $22,500 for each day between May 31 and June 14 that the closing does not occur.
If it is not completed by June 14, the agreement will be terminated and Inland would continue as a 50% equity owner in IN Retail.
