Urstadt BiddleProperties Inc. announced a public offering of 2,750,000 shares of itsclass A common stock and the acquisition of Newfield Green Shopping Center in Stamford,Conn., for approximately $45.3 million.
Based on the company's closing stock price of $24.64 on July20, gross proceeds from the offering are estimated at roughly $77.9 million, includingthe full exercise of a 412,500-share overallotment option. DeutscheBank Securities Inc. is the sole book-running manager for the offering.
Net proceeds will be used to fully repay outstanding borrowingsunder the company's existing credit facility, including borrowings incurred as partof the Newfield Green purchase, with the remainder going toward general corporatepurposes.
The 72,000-square-foot Newfield Green center is anchored by a31,000-square-foot Grade A Market and a 14,200-square-foot CVS. At closing, theproperty was 97% leased.
Urstadt Biddle funded the purchase with a $22.6 million mortgagesecured by the property with a Voya Financial Services affiliate. The mortgage hasa 12-year term and requires payments of principal and interest at a 3.89% fixedrate. The company used its revolving credit facility to fund the balance of thepurchase price.