CLEVELAND, June 22, 2012 /PRNewswire/ -- Associated Estates Realty Corporation (NYSE, NASDAQ: AEC) today announced the pricing of a public offering of 5,500,000 of its common shares at a price of $14.40 per share, for net proceeds of approximately $75.8 million after the underwriting discount and estimated offering expenses (or approximately $87.2 million if the underwriters exercise their option to purchase additional shares in full). The Company has granted the underwriters a 30-day option to purchase up to an additional 825,000 of its common shares. All of the shares were offered by the Company and will be issued under the Company's currently effective shelf registration statement filed with the Securities and Exchange Commission. The offering is expected to close on June 27, 2012, subject to customary closing conditions.
The Company intends to use the net proceeds received from the offering to fund property acquisitions and development and for general corporate purposes. Pending application for the foregoing purposes, the Company intends to use the net proceeds to temporarily repay borrowings outstanding under its unsecured revolving credit facility.
Wells Fargo Securities, Citigroup and BofA Merrill Lynch served as Joint Book-Running Managers for the offering. Jefferies and Raymond James served as Co-Lead Managers for the offering. Cantor Fitzgerald & Co., Sandler O'Neill + Partners, L.P., Janney Montgomery Scott, Keefe, Bruyette & Woods, RBS, Compass Point Research & Trading, LLC, Ladenburg Thalmann & Co. Inc. and Piper Jaffray served as Co-Managers for the offering. A final prospectus supplement related to the public offering will be filed with the Securities and Exchange Commission. Copies of the final prospectus supplement, when available, may be obtained from Wells Fargo Securities, Attention: Equity Syndicate Department, 375 Park Avenue, New York, New York 10152, or by calling (800) 326-5897 or e-mail email@example.com; or Citigroup, Attention: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, or by calling (800) 831-9146; or BofA Merrill Lynch, Attention: Prospectus Department, 222 Broadway, 7th Floor, New York, NY 10038, or e-mail firstname.lastname@example.org.
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 in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state. The offering may be made only by means of a prospectus and related prospectus supplement forming part of the effective shelf registration statement.
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