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Lexington Realty Trust ( LXP - Snapshot Report) , a real estate investment trust (REIT), has recently announced its decision to offer 15 million shares at $9.45 each to enhance its liquidity. The company has also decided to grant the underwriters a 30-day option to purchase up to an additional 2.25 million shares to cover any over-allotment options. The offering is expected to close on October 15, 2012.
Lexington Realty intends to utilize the net proceeds from the offering to repay debt outstanding on its secured credit facility, debt assumed in the Net Lease Strategic Assets Fund L.P. acquisition, and for general corporate purposes.
Wells Fargo Securities LLC, part of Wells Fargo & Company ( WFC - Analyst Report) ; BofA Merrill Lynch, part of Bank of America Corporation ( BAC - Analyst Report) ; Jefferies, part of Jefferies Group, Inc ; and Key Banc Capital Markets, part of KeyCorp ( KEY - Analyst Report) are the joint book running managers for the offering.
As of June 30, 2012, Lexington Realty had $206 million outstanding on term loans. Cash and cash equivalents stood at $50.2 million at the end of second quarter 2012. The company aims to refinance its debts at substantially lower rates and capitalize on all favourable disposition and acquisitions opportunities.
Based in New York, Lexington Realty invests and manages single-tenant office, industrial and retail properties leased to major corporations throughout the United States. It provides investment advisory and asset management services to investors in the net lease area.
Lexington Realty currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We also have a long-term Outperform recommendation on the stock.