The company priced the 21.3 million share offering, which is larger than the announced 19.8 million share offering, at $10.20 a share. The underwriters of the offering have a 30-day option to buy up to 3.195 million more shares.
Education Realty expects $208 million in net proceeds from the offering. The proceeds will be sued to pay for the acquisition of The District on Apache at Arizona State University. The company will also use the proceeds to reduce outstanding debt under its revolving credit facility, and for general corporate purchases.
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TheStreet Ratings team rates EDUCATION REALTY TRUST INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EDUCATION REALTY TRUST INC (EDR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow."