Broadstone Net Lease Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Broadstone Net Lease (NYSE: BNL) announced a public offering of 10,000,000 shares of Common Stock priced at $23.00 each, with a 30-day option for underwriters to buy an additional 1,500,000 shares. The offering will close on June 28, 2021, subject to customary conditions. Proceeds will be used to pay down debt under BNL's $900 million revolving credit facility, fund acquisitions, and for general corporate purposes. The offering is registered under BNL's shelf registration statement filed with the SEC on June 23, 2021.

Positive

• Proceeds from the offering will strengthen the balance sheet by reducing outstanding debt.
• Funds will be allocated for potential acquisitions, positioning the company for growth.

Negative

• Issuance of additional shares may lead to shareholder dilution.
• Market perception may be negatively impacted due to increased share supply.

Broadstone Net Lease, Inc. (NYSE: BNL), an internally-managed real estate investment trust (“BNL,” the “Company,” “we,” “our,” or “us”), announced today the pricing of an underwritten public offering of 10,000,000 shares of its Common Stock at a price to the public of $23.00 per share, less underwriting discounts and commissions. The underwriters also have been granted a 30-day option to purchase up to an additional 1,500,000 shares of Common Stock at the public offering price, less underwriting discounts and commissions. The closing of the offering is expected to occur on June 28, 2021, subject to satisfaction of customary closing conditions.

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

The offering of Common Stock is being 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. The offering is being made only by means of a separate prospectus supplement and the accompanying prospectus. Copies of these documents are available at no charge on the SEC’s website at www.sec.gov. Alternatively, copies of the prospectus supplement and the accompanying prospectus may be obtained, when available, 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.

The offering of these securities is being made only by means of a prospectus supplement and an accompanying prospectus. 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 is the price of the Common Stock offering by BNL?

The Common Stock is priced at $23.00 per share.

When does the BNL stock offering close?

The offering is expected to close on June 28, 2021.

How will BNL use the proceeds from the stock offering?

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

Is there an option for underwriters to purchase additional shares?

Yes, underwriters have a 30-day option to purchase up to an additional 1,500,000 shares.

When was the shelf registration statement for BNL filed?

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