Essential Properties Realty Trust, Inc. Announces Pricing of Upsized Primary Public Offering of Common Stock

Rhea-AI Summary

Essential Properties Realty Trust, Inc. (NYSE: EPRT) announced a public offering of 7,600,000 shares of common stock at $23.00 per share, upsizing from a previous offering of 6,500,000 shares. The underwriters have a 30-day option to purchase up to an additional 1,140,000 shares. The net proceeds will be used to repay outstanding amounts on its revolving credit facility and for general corporate purposes, including future investments. The offering is set to close on August 4, 2022, pending customary conditions.

Positive

• Upsized public offering from 6,500,000 to 7,600,000 shares, indicating strong demand.
• Proceeds aimed at debt repayment and potential investments may enhance future growth.

Negative

• Potential dilution of existing shares due to the new offering.
• Market reaction may be negative due to increased shares outstanding.

PRINCETON, N.J.--(BUSINESS WIRE)-- Essential Properties Realty Trust, Inc. (NYSE: EPRT; the “Company”) announced today the pricing of an underwritten public offering of 7,600,000 shares of its common stock at a public offering price of $23.00 per share. The Company has granted the underwriters a 30-day option to purchase up to an additional 1,140,000 shares of common stock. The Company expects to use the net proceeds from the offering to repay amounts outstanding on its revolving credit facility and for general corporate purposes, including potential future investments. The offering was upsized from the previously announced offering size of 6,500,000 shares of common stock. All of the shares are being offered by the Company, and the offering is expected to close on August 4, 2022, subject to customary closing conditions.

Wells Fargo Securities, BofA Securities and Citigroup are acting as the joint lead book-running managers of the offering. Truist Securities, Goldman Sachs & Co. LLC, Mizuho Securities, Barclays, BMO Capital Markets and Capital One Securities are acting as the book-running managers of the offering. Huntington Capital Markets, TD Securities, JMP Securities LLC, Stifel, Ramirez & Co., Inc., Berenberg and Ladenburg Thalmann are acting as co-managers of the offering.

The offering of the common stock is being made pursuant to the Company’s effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”). A prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC. When available, a copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained from Wells Fargo Securities, LLC, Attention: Equity Syndicate Department, 30 Hudson Yards, 500 West 33rd Street - 14th Floor, New York, NY 10001, by telephone at 1-800-326-5897 or by email at cmclientsupport@wellsfargo.com; BofA Securities, Inc., NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC 28255-0001, Attn: Prospectus Department, Email: dg.prospectus_requests@bofa.com; or Citigroup Global Markets, Inc.: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Tel: 800-831-9146), or by visiting the EDGAR database on the SEC’s web site at www.sec.gov.

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. When used in this press release, the words “expect” and “will,” or the negative of these words, or similar words or phrases that are predictions of or indicate future events and that do not relate solely to historical matters, are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions regarding strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law. In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur as described, or at all.

Additional information concerning factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the Company’s SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2021 and subsequent Quarterly Reports on Form 10-Q. Copies of each filing may be obtained from the Company or the SEC. Such forward-looking statements should be regarded solely as reflections of the Company’s current plans and estimates. Actual results may differ materially from what is expressed or forecast in this press release.

About Essential Properties Realty Trust, Inc.

Essential Properties Realty Trust, Inc. is an internally managed REIT that acquires, owns and manages primarily single-tenant properties that are net leased on a long-term basis to companies operating service-oriented or experience-based businesses. As of June 30, 2022, the Company’s portfolio consisted of 1,561 freestanding net lease properties with a weighted average remaining lease term of 13.8 years and a weighted average rent coverage ratio of 4.0x. As of the same date, the Company’s portfolio was 99.9% leased to 322 tenants operating 469 different concepts in 16 industries across 46 states.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220801005880/en/

Investor/Media:

Essential Properties Realty Trust, Inc.

Daniel Donlan

Senior Vice President, Capital Markets

609-436-0619

investors@essentialproperties.com

Source: Essential Properties Realty Trust, Inc.

FAQ

What is the purpose of Essential Properties Realty Trust's public offering on August 4, 2022?

The public offering aims to repay amounts outstanding on its revolving credit facility and for general corporate purposes, including potential future investments.

How many shares are being offered by Essential Properties Realty Trust in the recent public offering?

The company is offering 7,600,000 shares of common stock, with an option for underwriters to purchase an additional 1,140,000 shares.

What is the pricing of Essential Properties Realty Trust's public offering?

The shares are being offered at a public price of $23.00 per share.

Who are the underwriters for the Essential Properties Realty Trust public offering?

Wells Fargo Securities, BofA Securities, and Citigroup are the joint lead book-running managers, along with others.

What potential impact does the offering have on existing shareholders of EPRT?

The offering could lead to dilution of existing shares, which may negatively affect the stock price.