American Assets Trust Inc., a San Diego-based company that is in the process of becoming a real estate investment trust, has priced its initial public offering of 27.5 million shares of common stock at $20.50 per share. The shares began trading this morning on the New York Stock Exchange under the symbol “AAT.” As of 11 a.m., the price had risen to $21.71 per share.
Underwriters have been granted a 30-day option to purchase up to an additional 4.125 million shares at the initial public offering price.
The net proceeds of $515 million will go the company's operating partnership. They will be used to repay outstanding debt, for tenant improvements and leasing commissions, for loan transfer and consent fees and property renovations, and for general corporate purposes, including working capital, future acquisitions and transfer taxes.
BofA Merrill Lynch, Wells Fargo Securities and Morgan Stanley are the joint book-running managers for the offering. The co-managers of the offering are KeyBanc Capital Markets, RBC Capital Markets, Piper Jaffray, PNC Capital Markets LLC and JMP Securities.
AAT owns, operates, acquires and develops high quality retail and office properties in attractive, high-barrier-to-entry markets, primarily in California and Hawaii. It was formed to succeed the real estate business of American Assets, Inc., and its retail portfolio comprises approximately 3.0 million rentable square feet, and its office portfolio comprises approximately 1.5 million square feet.
