Armada Hoffler Announces Upsizing and Pricing of Public Offering of Common Stock
Armada Hoffler (NYSE: AHH) has priced an underwritten public offering of 9,000,000 shares of its common stock, expecting to raise approximately $94.5 million in gross proceeds. The offering is set to close on September 27, 2024, with underwriters having a 30-day option to purchase up to an additional 1,350,000 shares. The company plans to use the net proceeds to repay loans secured by Chronicle Mill, Premier, and Market at Mill Creek, as well as outstanding amounts on its revolving credit facility. Any remaining funds will be used for general corporate purposes and working capital.
The offering is being managed by Jefferies, BofA Securities, and Barclays as joint book-running managers, with Scotiabank and Stifel as additional book-running managers, and Janney Montgomery Scott and Regions Securities as co-managers.
Armada Hoffler (NYSE: AHH) ha fissato il prezzo di un offerta pubblica sottoscritta di 9.000.000 azioni delle sue azioni ordinarie, prevedendo di raccogliere circa 94,5 milioni di dollari in proventi lordi. L'offerta dovrebbe chiudersi il 27 settembre 2024, con i sottoscrittori che hanno un'opzione di 30 giorni per acquistare fino a ulteriori 1.350.000 azioni. L'azienda prevede di utilizzare i proventi netti per ripagare i prestiti garantiti da Chronicle Mill, Premier e Market at Mill Creek, così come per saldare le somme pendenti sul suo credito revolving. Eventuali fondi rimanenti saranno utilizzati per scopi aziendali generali e capitale circolante.
L'offerta è gestita da Jefferies, BofA Securities e Barclays come gestori principali, con Scotiabank e Stifel come gestori aggiuntivi, e Janney Montgomery Scott e Regions Securities come co-gestori.
Armada Hoffler (NYSE: AHH) ha fijado el precio de una oferta pública bajo suscripción de 9,000,000 acciones de sus acciones ordinarias, esperando recaudar aproximadamente $94.5 millones en ingresos brutos. La oferta está programada para cerrarse el 27 de septiembre de 2024, con los suscriptores teniendo una opción de 30 días para comprar hasta 1,350,000 acciones adicionales. La compañía planea utilizar los ingresos netos para pagar préstamos garantizados por Chronicle Mill, Premier y Market at Mill Creek, así como las cantidades pendientes en su línea de crédito revolving. Cualquier fondo restante se utilizará para fines corporativos generales y capital de trabajo.
La oferta está siendo gestionada por Jefferies, BofA Securities y Barclays como gestores principales, con Scotiabank y Stifel como gestores adicionales, y Janney Montgomery Scott y Regions Securities como co-gestores.
아르마다 호플러 (NYSE: AHH)는 9,000,000주의 일반 주식을 공개적으로 판매하기 위해 가격을 책정하였으며, 약 9,450만 달러의 총 수익을 올릴 것으로 기대하고 있습니다. 이 오퍼링은 2024년 9월 27일에 마감될 예정이며, 인수자는 추가로 1,350,000주를 구매할 수 있는 30일 옵션을 보유하고 있습니다. 회사는 순수익을 크로니클 밀, 프리미어, 밀 크리크 마켓에 담보된 대출을 상환하는 데 사용할 계획이며, 회전 신용 시설의 미지급 잔액에도 사용할 예정입니다. 남은 자금은 일반 회사 용도 및 운영 자본에 사용될 것입니다.
이번 오퍼링은 제퍼리즈, BofA 증권, 바클레이스가 공동 주간사로 관리하며, 스코샤뱅크와 스티펠은 추가 주간사로, 잔니 몬고메리 스콧과 리전스 증권이 공동 관리합니다.
Armada Hoffler (NYSE: AHH) a fixé le prix d'une offre publique souscrite de 9 000 000 d'actions de ses actions ordinaires, s'attendant à lever environ 94,5 millions de dollars en produits bruts. L'offre devrait se clore le 27 septembre 2024, les souscripteurs ayant une option de 30 jours pour acheter jusqu'à 1 350 000 actions supplémentaires. La société prévoit d'utiliser les produits nets pour rembourser des prêts garantis par Chronicle Mill, Premier et Market at Mill Creek, ainsi que pour régler les montants impayés de sa ligne de crédit renouvelable. Les fonds restants seront utilisés à des fins générales de l'entreprise et pour le fonds de roulement.
L'offre est gérée par Jefferies, BofA Securities et Barclays en tant que gestionnaires principaux, avec Scotiabank et Stifel en tant que gestionnaires supplémentaires, et Janney Montgomery Scott et Regions Securities en tant que co-gestionnaires.
Armada Hoffler (NYSE: AHH) hat den Preis für eine öffentlich angebotene Zeichnung von 9.000.000 Aktien seiner Stammaktien festgelegt, mit einer zu erwartenden Einnahme von ca. 94,5 Millionen Dollar in Bruttoerträgen. Das Angebot soll am 27. September 2024 schließen, wobei die Emissionsbanken eine 30-Tage-Option haben, bis zu 1.350.000 Aktien zusätzlich zu kaufen. Das Unternehmen plant, die Nettoerlöse zur Rückzahlung von Darlehen zu verwenden, die durch Chronicle Mill, Premier und Market at Mill Creek gesichert sind, sowie die ausstehenden Beträge seiner revolvierenden Kreditlinie zu begleichen. Alle verbleibenden Mittel werden für allgemeine Unternehmenszwecke und Betriebskapital verwendet.
Die Emission wird von Jefferies, BofA Securities und Barclays als Hauptbuchmanager verwaltet, mit Scotiabank und Stifel als zusätzlichen Buchmanagern und Janney Montgomery Scott und Regions Securities als Co-Manager.
- Raised approximately $94.5 million in gross proceeds
- Option for underwriters to purchase additional 1,350,000 shares
- Proceeds to be used for debt repayment and working capital
- Potential dilution of existing shareholders' ownership
- Increased share count may impact earnings per share
Insights
Armada Hoffler's public offering of 9 million shares at approximately
The primary use of proceeds to repay loans secured by specific properties (Chronicle Mill, Premier and Market at Mill Creek) suggests a strategic deleveraging effort. This could improve the company's balance sheet and potentially reduce interest expenses, enhancing profitability in the long term.
However, the dilutive effect on existing shareholders is notable, with the offering representing about
The involvement of major underwriters like Jefferies, BofA Securities and Barclays lends credibility to the offering and may indicate strong institutional interest. The 30-day option for additional shares provides flexibility to raise up to
This equity raise by Armada Hoffler, a REIT focused on mixed-use properties, signals a strategic shift in their capital structure. By using the proceeds to pay off property-specific loans and reduce revolving credit facility debt, the company is effectively recapitalizing its portfolio with equity instead of debt.
This move could provide several benefits:
- Increased financial flexibility for future acquisitions or developments
- Potentially improved debt-to-equity ratio, which may lead to better credit ratings
- Reduced interest expense, potentially improving FFO (Funds From Operations)
However, it's important to consider the timing of this offering. With rising interest rates putting pressure on real estate valuations, the company might be proactively strengthening its balance sheet to weather potential market challenges. Investors should closely monitor how effectively management deploys any remaining proceeds for "general corporate purposes and working capital" to ensure value creation.
VIRGINIA BEACH, Va., Sept. 25, 2024 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) today announced that it has priced an underwritten public offering of 9,000,000 shares of its common stock for total gross proceeds (before underwriters’ discounts and commissions and offering expenses) of approximately
The offering is expected to close on September 27, 2024, subject to customary closing conditions. The Company has granted the underwriters a 30-day option to purchase up to an additional 1,350,000 shares at the public offering price, less the underwriting commissions.
The Company intends to use the net proceeds from the offering to repay (A) the loan secured by Chronicle Mill, (B) the loan secured by Premier, (C) the loan secured by Market at Mill Creek and (D) amounts outstanding under the Company’s revolving credit facility, with any remaining net proceeds being used for general corporate purposes and working capital.
Jefferies, BofA Securities and Barclays are serving as the joint book-running managers for the offering. Scotiabank and Stifel are serving as additional book-running managers for this offering. Janney Montgomery Scott and Regions Securities LLC are serving as co-managers for the offering.
Copies of the final prospectus supplement and accompanying prospectus related to these securities may be obtained, when available, from: (i) Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com, (ii) BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus Department, Email: dg.prospectus_requests@bofa.com and (iii) Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: (888) 603-5847.
The offering is being made pursuant to a shelf registration statement on Form S-3, which became automatically effective upon filing with the Securities and Exchange Commission on February 28, 2023. A preliminary prospectus supplement relating to the offering was filed with the Securities and Exchange Commission, and a final prospectus supplement relating to the offering will be filed with the Securities and Exchange Commission. Prospective investors should read the prospectus forming a part of that registration statement, the preliminary prospectus supplement related to the offering, the final prospectus supplement related to the offering, when available, and the other documents that the Company has filed with the Securities and Exchange Commission for more complete information about the Company and the offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
About Armada Hoffler
Armada Hoffler (NYSE: AHH) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality multifamily, office, and retail properties located primarily in the Mid-Atlantic and Southeastern United States. The Company also provides general construction and development services to third-party clients, in addition to developing and building properties to be placed in their stabilized portfolio. Founded in 1979 by Daniel A. Hoffler, Armada Hoffler has elected to be taxed as a REIT for U.S. federal income tax purposes.
Forward-Looking Statements
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. For example, the fact that the offering has priced may imply that the offering will close, but the closing is subject to conditions customary in transactions of this type and may be delayed or may not occur at all. In addition, the fact that the underwriters have an option to purchase additional shares may imply that this option will be exercised. However, the underwriters are not under any obligation to exercise this option, or any portion of it, and may not do so. Investors should not place undue reliance upon forward-looking statements. Completion of the offering on the terms described and the application of net proceeds are subject to numerous conditions, many of which are beyond the control of the Company, including, market conditions, general economic conditions and other factors, including those set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and those set forth in other documents filed by the Company from time to time with the Securities and Exchange Commission.
Contact:
Chelsea D. Forrest
Armada Hoffler
Vice President of Corporate Communications and Investor Relations
Email: CForrest@armadahoffler.com
Phone: (757) 612.4248
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