Acadia Realty Trusthas launched a public offering of roughly 3.6 million common shares of beneficialinterest on a forward basis in connection with a forward sale agreement.
Barclays and Citigroup are acting as underwriters and have beengranted a 30-day option to purchase up to an additional 540,000 common shares. Grossproceeds are estimated to be about $146.8 million, based on the April 1 closingprice of $35.46 per share.
Net proceeds are targeted for use in acquiring properties inthe company's pipeline of street and urban retail portfolios and individual retailproperties.
Acadia has entered into a forward sale agreement with a Citigroupaffiliate, under which Acadia agreed to issue and sell the affiliate the same numberof common shares sold by Citigroup to the underwriters in the public offering. TheCitigroup affiliate, or its affiliate, is expected to borrow from third partiesand sell to the underwriters up to about 3.6 million Acadia common shares at theclose of the offering. If the additional-share option is exercised, Acadia willenter into one or more additional forward sale agreements with the Citigroup affiliatein respect of the number of shares subject to the exercise of the option.
Acadia intends to issue and sell, upon physical settlement ofthe forward sale agreement, up to an aggregate of 3.6 million common shares to theforward purchaser, assuming no exercise of the additional-share option. The companyplans to physically settle the forward sale agreement in full on one or more datesno later than about 12 months after the date of the prospectus supplement relatingto the offering.