Hudson Pacific Properties Announces Pricing of Preferred Stock Offering

Rhea-AI Summary

Hudson Pacific Properties (NYSE: HPP) announced a public offering of 16 million shares of 4.750% Series C Cumulative Redeemable Preferred Stock at $25.00 per share, aiming for gross proceeds of $400 million. The offering includes a 30-day option for underwriters to purchase an additional 2.4 million shares. Proceeds will support debt repayment, development, acquisitions, and working capital. The offering is expected to close on November 16, 2021. Joint book-running managers for the offering include BofA Securities and Morgan Stanley.

Positive

• Raising $400 million through a public offering strengthens Hudson Pacific's financial position.
• The offering will enable the company to fund development and acquisition opportunities.

Negative

• Issuing preferred stock may dilute existing shareholders' equity.
• Dependence on continued market conditions for successful offering and future financial performance.

LOS ANGELES--(BUSINESS WIRE)-- Hudson Pacific Properties, Inc. (the “Company” or “Hudson Pacific”) (NYSE: HPP) today announced the pricing of an underwritten public offering of 16,000,000 shares of 4.750% Series C Cumulative Redeemable Preferred Stock, at a price per share of $25.00, for gross proceeds of $400,000,000, before deducting the underwriting discount and estimated offering expenses. The Company has granted the underwriters of the offering a thirty day option to purchase up to 2,400,000 additional shares of 4.750% Series C Cumulative Redeemable Preferred Stock solely to cover over-allotments, if any. The offering is expected to close on November 16, 2021, subject to customary closing conditions. The Company intends to apply to list the Series C Cumulative Redeemable Preferred Stock on the New York Stock Exchange under the symbol “HPP Pr C.”

The Company intends to contribute the net proceeds from this offering to its operating partnership, which intends to use such proceeds to repay amounts outstanding from time to time under its credit facility and/or other indebtedness, fund development or redevelopment activities, fund potential acquisition opportunities, provide funds for tenant improvements and capital expenditures, and provide for working capital and/or for other general corporate purposes.

BofA Securities, Morgan Stanley, Wells Fargo Securities and RBC Capital Markets are acting as joint book-running managers for the offering.

This offering is being made pursuant to an effective shelf registration statement and prospectus and related preliminary prospectus supplement filed by the Company with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of any offer to buy, 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 registration or qualification under the securities laws of any such state or jurisdiction.

Copies of the prospectus supplement and related prospectus for this offering can be obtained, when available, by calling or emailing (i) BofA Securities, Inc. toll-free at 1-800-294-1322 or dg.prospectus_requests@bofa.com; (ii) Morgan Stanley & Co. LLC toll-free at 1-866-718-1649; (iii) Wells Fargo Securities, LLC toll-free at 1-800-645-3751, or (iv) RBC Capital Markets, LLC toll-free at 1-866-375-6829.

About Hudson Pacific Properties

Hudson Pacific is a real estate investment trust with a portfolio of office and studio properties totaling over 20 million square feet, including land for development. Focused on global epicenters of innovation, media and technology, its anchor tenants include Fortune 500 and leading growth companies such as Google, Netflix, Riot Games, Square, Uber and more. Hudson Pacific is publicly traded on the NYSE under the symbol HPP and listed as a component of the S&P MidCap 400 Index.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the Company from time to time with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211104006426/en/

Investor Contact

Laura Campbell

Executive Vice President, Investor Relations & Marketing

(310) 622-1702

lcampbell@hudsonppi.com

Media Contact

Laura Murray

Director, Communications

(310) 622-1781

lmurray@hudsonppi.com

Source: Hudson Pacific Properties, Inc.

FAQ

What is the recent offering by Hudson Pacific Properties (HPP)?

Hudson Pacific Properties announced a public offering of 16 million shares of 4.750% Series C Cumulative Redeemable Preferred Stock, raising $400 million.

When will Hudson Pacific Properties' public offering close?

The offering is expected to close on November 16, 2021.

What will Hudson Pacific Properties do with the proceeds from the offering?

The proceeds will be used for debt repayment, funding development, acquisitions, tenant improvements, and other corporate purposes.

Who are the joint book-running managers for Hudson Pacific Properties' offering?

BofA Securities, Morgan Stanley, Wells Fargo Securities, and RBC Capital Markets are acting as joint book-running managers.

How many additional shares can underwriters purchase in Hudson Pacific's offering?

Underwriters have a 30-day option to purchase up to 2.4 million additional shares.