Single tenant-focused retail real estate investment trust Agree Realty Corp. launched an underwritten public offering of 3.0 million shares of its common stock.
The company expects to grant the underwriters a 30-day overallotment option to purchase up to an additional 450,000 shares.
In connection with the offering, Agree Realty expects to enter into a forward sale agreement with Citibank NA and its affiliates with respect to 3,450,000 of its common shares, assuming full exercise of the overallotment option.
Agree Realty plans to use any net proceeds from the future settlement of the forward sale agreement to finance property purchases and development activity, with the balance of proceeds to be held for general working capital and other corporate purposes, including reducing the outstanding balance on the company's revolving credit facility.
Citigroup Global Markets Inc. is serving as sole book-running manager for the offering.
