Sun Communities prices upsized common stock offering

Sun Communities Inc. priced its upsized underwritten public offering of 3.5 million common shares at $185.00 apiece.

The manufactured home real estate investment trust granted the underwriters a 30-day overallotment option to buy up to 525,000 additional shares.

The offering, which is expected to close Nov. 18, is subject to customary closing conditions.

In connection with the offering, Sun Communities entered into a forward sale agreement with Citibank NA. The REIT intends to deliver, upon physical settlement of the forward sale agreement, no later than Nov. 18, 2022, a total of 3.5 million common shares to the forward purchaser in exchange for cash proceeds. Sun Communities will not initially receive any proceeds from the offering or the forward sale agreement.

Upon the future settlement of the forward sale agreement, any proceeds received may be used by the company to fund a portion of the cash component of its acquisition of Park Holidays UK Ltd., to repay outstanding debt under its senior credit facility, to fund possible future acquisitions of properties and/or for working capital and general corporate purposes.

Citigroup, RBC Capital Markets, BofA Securities, BMO Capital Markets and J.P. Morgan are serving as bookrunning managers for the offering.