Broadstone Net Lease Announces Closing of Public Offering of Common Stock

Rhea-AI Summary

Broadstone Net Lease (NYSE: BNL) successfully completed a public offering of 11,500,000 shares of Common Stock at $23.00 per share, inclusive of an additional 1,500,000 shares from underwriters. The net proceeds, expected to enhance financial flexibility, will be utilized to reduce borrowings from its $900 million revolving credit facility, pursue acquisition opportunities, and support general corporate needs. Leading financial institutions including Goldman Sachs and BMO Capital Markets managed the offering, which was executed under BNL's existing SEC registration statement.

Positive

• Successfully raised funds through the offering, enhancing financial position.
• Intended use of proceeds: pay down debts, acquire new assets, and support corporate operations.

Negative

• Issuing new shares may dilute existing shareholders' equity.

Broadstone Net Lease, Inc. (NYSE: BNL), an internally-managed real estate investment trust (“BNL,” the “Company,” “we,” “our,” or “us”), today announced that it has completed its underwritten public offering of 11,500,000 shares of its Common Stock, which includes the full exercise of the underwriters’ option to purchase an additional 1,500,000 shares of Common Stock, at a price to the public of $23.00 per share, less underwriting discounts and commissions.

BNL will contribute the net proceeds of the proposed offering to its operating partnership, Broadstone Net Lease, LLC, which intends to subsequently use such net proceeds to pay down outstanding borrowings under BNL’s $900 million revolving credit facility, fund potential acquisition opportunities and for other general corporate and working capital purposes.

Goldman Sachs & Co. LLC and BMO Capital Markets acted as joint lead book-running managers for the offering. J.P. Morgan, Morgan Stanley, Capital One Securities and Truist Securities acted as joint book-running managers for the offering. KeyBanc Capital Markets, BTIG, Regions Securities LLC, Ramirez & Co., Inc. and TD Securities acted as co-managers for the offering.

The offering of Common Stock was made pursuant to BNL’s shelf registration statement (including a prospectus), which was filed on June 23, 2021 with the Securities and Exchange Commission (the “SEC”) and automatically became effective upon filing. Copies of documents related to the offering are available at no charge on the SEC’s website at www.sec.gov. Alternatively, copies of the final prospectus and the accompanying prospectus may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, or by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com; and BMO Capital Markets Corp., Attention: Equity Syndicate Department, 3 Times Square, 25th Floor, New York, NY 10036, or by telephone at (800) 414-3627, or by email at bmoprospectus@bmo.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Broadstone Net Lease, Inc.

BNL is an internally-managed REIT that acquires, owns, and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. The Company utilizes an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting. As of March 31, 2021, BNL’s diversified portfolio consisted of 661 individual net leased commercial properties with 660 located in 41 U.S. states and one property located in Canada across the industrial, healthcare, restaurant, office, and retail property types.

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FAQ

What was Broadstone Net Lease's recent public offering size and price?

Broadstone Net Lease offered 11,500,000 shares of Common Stock at $23.00 per share.

What will the proceeds from BNL's offering be used for?

The proceeds will be used to pay down debt, pursue acquisitions, and for general corporate purposes.

Who managed Broadstone Net Lease's recent stock offering?

Goldman Sachs and BMO Capital Markets acted as joint lead book-running managers for the offering.

When was Broadstone Net Lease's shelf registration statement filed?

The shelf registration statement was filed on June 23, 2021.

What risks are associated with the stock offering for BNL shareholders?

The issuance of new shares may lead to dilution of existing shareholders' equity.