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.
"We would like to thank our existing stockholders and Senator for their tremendous support of the Company and its growth strategy," stated Michael Baumann, Chairman and Chief Executive Officer of Trade Street. "We believe the completion of the Rights Offering and Private Placement strengthens our balance sheet and positions the Company to continue the execution of our strategic growth objectives."About Trade Street Residential, Inc. Trade Street Residential, Inc. is a full service, vertically integrated, self-administered and self-managed real estate investment trust focused on acquiring, owning, operating and managing conveniently located, garden-style and mid-rise apartment communities in mid-sized cities and suburban submarkets of larger cities primarily in the southeastern United States and Texas. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases, which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could impact the Company's future results, performance or transactions, see the section entitled "Risk Factors" in the Company's prospectus relating to the Rights Offering.
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