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Grubb & Ellis announces $90 million preferred equity transaction
The Santa Ana-based company will sell 900,000 shares of preferred stock to investors.
By Larry UrishPublished: October 26, 2009 02:30 PM
Grubb & Ellis Co., a Santa Ana-based real estate services and investment firm, announced that it has reached an agreement with institutional buyers and accredited investors to sell 900,000 shares of a 12 percent cumulative convertible preferred stock, which amounts to $90 million in gross proceeds. The firm has granted the initial purchaser and placement agent an additional 45 days to purchase up to 100,000 shares of the stock.
The transaction is expected to take place on or about Friday, Nov. 6.
"This is a transformational event for Grubb & Ellis,” says C. Michael Kojaian, the company's chairman and largest stockholder. “Upon closing, Grubb & Ellis will be one of the stronger capitalized companies in the real estate services industry. We are extremely pleased with the demand for the security and the quality of the institutional investors attracted to the company."
With the pending transaction, Grubb & Ellis will seek stockholder approval to officially increase the authorized capital of the company. Once approved, each share of preferred stock will be convertible to 60.606 shares of common stock, which amounts to a 10 percent premium compared to the closing price of the common stock as of last Thursday, Oct. 22.
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The transaction is expected to take place on or about Friday, Nov. 6. "This is a transformational event for Grubb & Ellis,” says C. Michael Kojaian, the company's chairman and largest stockholder. “Upon closing, Grubb & Ellis will be one of the stronger capitalized companies in the real estate services industry. We are extremely pleased with the demand for the security and the quality of the institutional investors attracted to the company." With the pending transaction, Grubb & Ellis will seek stockholder approval to officially increase the authorized capital of the company. Once approved, each share of preferred stock will be convertible to 60.606 shares of common stock, which amounts to a 10 percent premium compared to the closing price of the common stock as of last Thursday, Oct. 22. NEXT PAGE >> Related headlines O.C. bankruptcy filings rise in September Irvine-based Diedrich Coffee seeks new CEO Santa Ana's Behr reaches settlement with EPA |
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