The company priced the 9 million shares of common stock at $29.00 a share. The underwrites of the offering were given a 30-day option to buy up to an additional 1.35 million shares of common stock. The offering is expected to close May 20, 2014.
Select Income REIT plans to use the proceeds of the offering to repay outstanding amount under its revolving credit facility, and for general corporate purposes.
Must read: Warren Buffett's 10 Favorite Growth Stocks
TheStreet Ratings team rates SELECT INCOME REIT as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SELECT INCOME REIT (SIR) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, increase in stock price during the past year, increase in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."