SL Green Realty Corp. Announces Pricing of 5,063,291 Shares of Common Stock

Rhea-AI Summary

SL Green Realty Corp (NYSE: SLG) announced the pricing of an underwritten public offering of 5,063,291 shares of common stock at $79.00 per share. The company granted underwriters an option to purchase up to 759,493 additional shares within 30 days. The offering, expected to close on November 25, 2024, will use proceeds for general corporate purposes, including new investments and debt repayment. Wells Fargo Securities, J.P. Morgan, TD Securities, BMO Capital Markets, and Deutsche Bank Securities are serving as joint bookrunning managers.

Positive

• Potential to raise approximately $400 million through the stock offering
• Opportunity to reduce outstanding indebtedness
• Strong backing from major financial institutions as underwriters

Negative

• Potential dilution of existing shareholders' equity
• Share price set at $79.00 may represent a discount to market value
• Increase in outstanding shares could pressure stock price

Insights

Financial Analyst

This significant equity offering of $400 million (5,063,291 shares at $79.00 per share) represents a strategic capital raise for SL Green. The pricing reflects a slight discount to current market prices, which is typical for secondary offerings. The potential additional $60 million from the overallotment option could bring the total raise to $460 million.

The stated use of proceeds for debt repayment and new investments is particularly noteworthy given the challenging commercial real estate market in Manhattan. With interest rates elevated and office vacancy rates still high post-pandemic, this capital injection strengthens SLG's balance sheet and provides flexibility for strategic opportunities. The participation of major investment banks as underwriters adds credibility to the offering, though the dilutive effect on existing shareholders should be considered.

NEW YORK, Nov. 21, 2024 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (the “Company”) (NYSE: SLG) announced today that it priced an underwritten public offering of 5,063,291 shares of its common stock, par value $0.01 per share (the “Common Stock”), at a price to the public of $79.00 per share. In connection with the offering, the Company has granted the underwriters an option to purchase up to an additional 759,493 shares of Common Stock during the next 30 days. The offering is expected to close on November 25, 2024, subject to customary closing conditions.

The Company intends to use net proceeds from the offering for general corporate purposes, which may include new debt and equity investment opportunities and the repayment of a portion of its outstanding indebtedness.

Wells Fargo Securities, J.P. Morgan, TD Securities, BMO Capital Markets, and Deutsche Bank Securities are serving as joint bookrunning managers for the offering. BofA Securities, Goldman Sachs & Co. LLC, BNY Capital Markets and Credit Agricole CIB are acting as co-managers for the offering.

This offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”) on November 21, 2024 and only by means of a prospectus. You may obtain these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies of the prospectus supplement and the prospectus may be obtained from Wells Fargo Securities at Wells Fargo Securities, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, at 800-645-3751 (option #5) or email a request to WFScustomerservice@wellsfargo.com; J.P. Morgan at J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; TD Securities at TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, New York 10017, by telephone at (855) 495-9846, or by email at TD.ECM_Prospectus@tdsecurities.com; BMO Capital Markets at BMO Capital Markets Corp., Attn: Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036, email: bmoprospectus@bmo.com; or Deutsche Bank Securities at Deutsche Bank Securities Inc., Attention: Prospectus Department, at 1 Columbus Circle, New York, NY 10019, by telephone at (800) 503-4611 or by email at Prospectus.Ops@db.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy shares of Common Stock, 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.

About SL Green Realty Corp.

SL Green Realty Corp., Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of September 30, 2024, SL Green held interests in 55 buildings totaling 31.8 million square feet. This included ownership interests in 28.1 million square feet of Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments.

Forward-looking Statements

This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, occupancy, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or other similar words or terms.

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements include risks and uncertainties described in our filings with the SEC. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

PRESS CONTACT
slgreen@berlinrosen.com

SLG-FIN

FAQ

How many shares is SL Green (SLG) offering in its November 2024 public offering?

SL Green is offering 5,063,291 shares of common stock, with an additional option for underwriters to purchase up to 759,493 shares within 30 days.

What is the price per share for SL Green's (SLG) November 2024 stock offering?

The common stock is priced at $79.00 per share.

How will SL Green (SLG) use the proceeds from its 2024 stock offering?

SL Green plans to use the net proceeds for general corporate purposes, including new debt and equity investment opportunities and the repayment of outstanding indebtedness.

When is SL Green's (SLG) 2024 stock offering expected to close?

The offering is expected to close on November 25, 2024, subject to customary closing conditions.