UDR, Inc. (NYSE: UDR) today announced the pricing of a public offering of 19,000,000 shares of its common stock at a price of $25.70 per share, for net proceeds of approximately $468.5 million after underwriting discounts and commissions and estimated offering expenses (or approximately $538.8 million if the underwriters' option to purchase additional shares is exercised in full). UDR has granted the underwriters a 30-day option to purchase up to an additional 2,850,000 shares of common stock. The offering is expected to close on June 4, 2012, subject to customary closing conditions. All of the shares of common stock were offered by the Company and will be issued under a currently effective shelf registration statement filed with the Securities and Exchange Commission.
The Company expects to use the net proceeds from the offering to repay approximately $364 million of its 3.3% secured debt due 2012 - 2014, to redeem all of its outstanding 6.75% Series G Preferred Stock for a total cash cost of $81.6 million plus accrued and unpaid dividends up to the redemption date, to repay a portion of the indebtedness currently outstanding under its unsecured credit facility and the balance for working capital and general corporate purposes.
BofA Merrill Lynch, J.P. Morgan, Citigroup, Credit Suisse and Morgan Stanley served as joint book-running managers for the offering. A preliminary prospectus supplement related to the public offering has been filed with the Securities and Exchange Commission and a final prospectus supplement will be made available. Copies of the preliminary prospectus supplement and final prospectus supplement, when available, may be obtained from Merrill Lynch, Pierce, Fenner & Smith Incorporated, 4 World Financial Center, New York, New York 10080, Attention: Prospectus Department or email email@example.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York, 11717, telephone: (866) 803-9204; Citigroup Global Markets Inc., Attention: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th floor, Brooklyn, New York 11220, toll free at 1-800-831-9146; Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, New York 10010, toll free at 1-800-221-1037 or email: firstname.lastname@example.org; or Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New York 10014, Attention: Prospectus Department, telephone: (866) 718-1649 or email: email@example.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the security laws of any state or other jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement.