AlexandriaReal Estate Equities Inc. closed an underwritten public of 7,475,000 shares ofits common stock issued at a price of $101.00 per share.
This includes 975,000 shares bought by the underwriters as aresult of fully exercising their overallotment option.
Alexandria, which struck forward sale agreements with Bankof America NA, Citibank NA and JPMorgan Chase Bank NA in connection with theoffering, said it will not initially receive any proceeds from the sale ofshares of its common stock by the banks.
It expects to use any net proceeds received upon the futuresettlement of the forward sale agreements for financing the pending acquisitionof the One Kendall Square property in greater Boston.
The company said that selling the stock through the forwardsale agreements enables it to set the price of the shares upon pricing theoffering while delaying the issuance of the shares and the receipt of the netproceeds until the closing of the One Kendall acquisition.
Any remaining proceeds will be used to fund near-termdevelopment projects and for general working capital and other corporatepurposes, including reducing any outstanding balances on the company'sunsecured senior line of credit.
BofA Merrill Lynch, Citigroup and J.P. Morgan are the jointbook-running managers.
BBVA, TD Securities, Baird, BB&T Capital Markets, BNPPARIBAS, Barclays, Capital One Securities, Evercore ISI, Fifth Third Securities,Goldman Sachs & Co., JMP Securities, Loop Capital Markets, MUFG, MizuhoSecurities, PNC Capital Markets LLC, RBC Capital Markets, Ramirez & Co.Inc., SMBC Nikko, Scotiabank and SunTrust Robinson Humphrey served asco-managers for the offering.