ALEXANDRIA REAL ESTATE EQUITIES, INC. ANNOUNCES CLOSING OF PUBLIC OFFERING OF 7,000,000 SHARES OF COMMON STOCK
On January 7, 2022, Alexandria Real Estate Equities (NYSE: ARE) announced the closing of a public offering of 7,000,000 shares at $210.00 per share. The offering involved forward sale agreements with major banks including JPMorgan and Bank of America. While the company will not receive initial proceeds from the shares sold by forward purchasers, future proceeds will be allocated towards acquisitions, development projects, and general corporate purposes. Alexandria, recognized for its focus on collaborative life science and technology campuses, continues to establish a significant market presence in key U.S. locations.
- Plans to use future proceeds for acquisitions and development projects.
- Strengthening market position in key innovation clusters.
- Initial proceeds from the offering will not be received until future settlements.
- Potential dilution of shares due to the forward sale agreements.
PASADENA, Calif., Jan. 7, 2022 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. ("Alexandria" or the "Company") (NYSE: ARE) today announced the closing of its previously announced underwritten public offering of 7,000,000 shares of the Company's common stock at a public offering price of
J.P. Morgan, BofA Securities, Citigroup, Goldman Sachs & Co. LLC, RBC Capital Markets, BTIG, Evercore ISI, Mizuho Securities, Scotiabank, SMBC Nikko, TD Securities, Barclays, Capital One Securities and PNC Capital Markets LLC acted as joint book running managers for the offering. Baird, BNP PARIBAS, Fifth Third Securities, Regions Securities LLC, Truist Securities and Ramirez & Co., Inc. acted as co-managers for the offering.
The Company will not initially receive any proceeds from the sale of shares of its common stock by the forward purchasers or their affiliates in the offering. The Company expects to use the net proceeds, if any, it receives upon the future settlement of the forward sale agreements to fund pending acquisitions and the construction of highly leased development and redevelopment projects, with remaining proceeds, if any, to be used for general working capital and other corporate purposes, which may include the reduction of the outstanding balance, if any, on the Company's unsecured senior line of credit and the outstanding indebtedness, if any, under the Company's commercial paper program. Selling common stock through the forward sale agreements enables the Company to set the price of such shares upon the pricing of the offering (subject to certain adjustments) while delaying the issuance of such shares and the receipt of the net proceeds by the Company until the expected funding is required.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Company's securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Alexandria, an S&P 500® urban office real estate investment trust, is the first, longest-tenured and pioneering owner, operator and developer uniquely focused on collaborative life science, agtech and technology campuses in AAA innovation cluster locations. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland and Research Triangle.
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding the Company's intended use of the proceeds. These forward-looking statements are based on the Company's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by the Company's forward-looking statements as a result of a variety of factors, including, without limitation, the risks and uncertainties detailed in its filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update this information. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in the Company's forward-looking statements, and risks and uncertainties to the Company's business in general, please refer to the Company's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q.
CONTACT: Sara Kabakoff, Vice President – Communications, (626) 788-5578, skabakoff@are.com
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SOURCE Alexandria Real Estate Equities, Inc.
FAQ
What details are available about Alexandria Real Estate's recent public offering of shares?
How will Alexandria Real Estate use the proceeds from the share offering?
Did Alexandria Real Estate receive any proceeds from the January 2022 share offering?
Who were the joint book running managers for the offering?
What risks are associated with the forward sale agreements for Alexandria Real Estate?
