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Trade Street Residential Announces Successful Completion Of $150 Million Recapitalization

Stocks in this article: TSRE

AVENTURA, Fla., Jan. 16, 2014 (GLOBE NEWSWIRE) -- Trade Street Residential, Inc. (Nasdaq:TSRE) ("Trade Street" or the "Company") announced today the completion of its previously announced $150 million recapitalization. The recapitalization transaction consisted of an offering of 15,797,788 shares of common stock at $6.33 per share to the holders of subscription rights granted to Trade Street's existing stockholders (the "Rights Offering") and a concurrent $50 million private placement (the "Private Placement") of shares of common stock to certain affiliates of Senator Investment Group LP (collectively, "Senator") at $6.33 per share. In addition, Senator had agreed to purchase all shares not purchased by holders of rights in the Rights Offering (the "Backstop Commitment"). Michael Baumann and David Levin, Trade Street's Chairman and Chief Executive Officer and President and Vice Chairman, respectively, agreed to purchase an aggregate of approximately $1.8 million of common stock in private placement concurrently with the closing of the Rights Offering.

The Company is pleased to announce that the holders of subscription rights in the Rights Offering, including Messrs. Baumann and Levin, who acquired their entire allotment in a private placement, acquired an aggregate of 15,565,461 shares for gross proceeds to the Company of approximately $98.5 million, or approximately 98.5% of the shares available in the Rights Offering. Pursuant to its Backstop Commitment, Senator acquired 232,327 shares of common stock for gross proceeds to the Company of approximately $1.5 million, or approximately 1.5% of the shares available in the Rights Offering. Combined with the shares acquired by Senator in the Private Placement and the shares issued to Senator as a fee for Senator's Backstop Commitment and the Private Placement, Senator owns 9,316,055 shares, representing approximately 25.6% of the 36,350,181 shares of outstanding common stock of the Company after the recapitalization.

The Company intends to use the net proceeds to repay certain indebtedness, fund current committed acquisitions and fund general working capital needs.

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