Macerich Announces Commencement of Public Offering of Common Stock

Rhea-AI Summary

Macerich (NYSE: MAC) has announced a public offering of 18,000,000 shares of common stock, with underwriters having a 30-day option to purchase up to 2,700,000 additional shares. The company plans to use the net proceeds, along with cash on hand from recent 'at the market' offering sales, to repay a $478.0 million mortgage loan with approximately 9.0% fixed interest rate secured by its Washington Square property. Goldman Sachs & Co. is serving as the lead bookrunner for the offering.

Positive

• Debt reduction through repayment of high-interest mortgage loan (9.0%)
• Strategic use of proceeds to improve balance sheet structure

Negative

• Significant shareholder dilution through 18M share offering
• Additional potential dilution of 2.7M shares through underwriters' option
• Large-scale equity raise indicating potential capital structure concerns

News Market Reaction – MAC

+3.00%

1 alert

+3.00% News Effect

On the day this news was published, MAC gained 3.00%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SANTA MONICA, Calif., Nov. 25, 2024 (GLOBE NEWSWIRE) -- The Macerich Company (NYSE: MAC) (the “Company” or “Macerich”) announced today that it has commenced an underwritten public offering of 18,000,000 shares of common stock. The Company expects to grant the underwriters a 30-day option to purchase up to 2,700,000 additional shares of its common stock.

The Company intends to use the net proceeds of this offering together with cash on hand, including from recent sales under the Company’s “at the market” offering program, to repay the $478.0 million mortgage loan with a fixed effective interest rate of approximately 9.0% and which is secured by its Washington Square property. Pending such use, the Company may invest the net proceeds in short-term, interest-bearing deposit accounts.

Goldman Sachs & Co. LLC is serving as the lead bookrunner and representative of the underwriters of the offering. Copies of the preliminary prospectus supplement and accompanying prospectus relating to these securities may be obtained, when available, by contacting: Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by email at Prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any such offer or sale will be made only by means of the prospectus supplement and prospectus forming part of the effective registration statement relating to these securities.

About the Company

Macerich is a fully integrated, self-managed, self-administered real estate investment trust (REIT). As a leading owner, operator, and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich’s portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 45 million square feet of real estate, consisting primarily of interests in 41 retail centers.

Forward-Looking Information

Information set forth in this press release contains “forward-looking statements” (within the meaning of the federal securities laws, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), which reflect the Company’s expectations regarding future events and plans, including, but not limited to, statements regarding the Company’s potential grant to the underwriters of an option to purchase additional shares of common stock and the Company’s anticipated use of net proceeds from the offering. Generally, the words “expects,” “anticipates,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “scheduled,” “predicts,” “may,” “will,” “should,” “could,” variations of such words and similar expressions identify forward-looking statements. The forward-looking statements are based on information currently available to us and involve a number of known and unknown assumptions, risks, uncertainties and other factors, which may be difficult to predict and beyond the control of the Company, which could cause actual results to differ materially from those contained in the forward-looking statements. These factors include the risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website at www.sec.gov. The Company disclaims any obligation to publicly update or revise any forward-looking statements contained in this press release whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law.

INVESTOR CONTACT: Samantha Greening, AVP, Investor Relations, Samantha.Greening@macerich.com

FAQ

How many shares is Macerich (MAC) offering in its public offering?

Macerich is offering 18,000,000 shares of common stock, with underwriters having a 30-day option to purchase up to 2,700,000 additional shares.

What will Macerich (MAC) use the proceeds from the stock offering for?

Macerich will use the proceeds to repay a $478.0 million mortgage loan with approximately 9.0% fixed interest rate secured by its Washington Square property.

Who is the lead bookrunner for Macerich's (MAC) stock offering?

Goldman Sachs & Co. is serving as the lead bookrunner and representative of the underwriters for the offering.