Terreno Realty Corp. (TRNO - Snapshot Report) declared an underwritten public offering of 5,000,000 common shares priced at $18.25 per share. Additionally, this real estate investment trust (REIT) expects the underwriters to be provided with a 30-day option to purchase up to an additional 750,000 common shares.
Net proceeds from the offering will be primarily utilized for the repayment of debt and to fund future acquisitions. Additionally, the proceeds would be used for general business purposes or for a combination of the abovementioned factors.
The lead managers for the offering are Stifel, Nicolaus & Company, Incorporated, a wholly owned subsidiary of Stifel Financial Corp. (SF - Snapshot Report), Mitsubishi UFJ Securities (USA), Inc. and Robert W. Baird & Co. Incorporated. The joint book-running managers for the offering are Goldman, Sachs & Co., a subsidiary of The Goldman Sachs Group, Inc. (GS - Analyst Report) and KeyBanc Capital Markets Inc, a unit of KeyCorp. (KEY - Analyst Report).
Further, the co-managers for the offering are PNC Capital Markets LLC, JMP Securities LLC, Compass Point Research & Trading, LLC and MLV & Co. LLC.
Though the intention of repaying debt is encouraging as it will lessen the company’s interest expenses, the offering would result in share dilution.
Earlier in Feb 2013, the company declared the pricing of 5,000,000 common shares at $16.60 per share. Moreover, the underwriters were provided with a 30-day option to purchase up to an additional 750,000 common shares.
In Oct 2012 as well, the company had declared the pricing of 4,000,000 common shares priced at $14.25 per share. Also, the underwriters were provided with a 30-day option to purchase up to an additional 600,000 common shares.
Terreno Realty currently carries a Zacks Rank #1 (Strong Buy).