BETHESDA, MD–Global Medical REIT has priced its public offering of 2.7 million shares of its preferred stock, netting $65.2 million.
The offering is expected to close on September 15, 2017, subject to customary closing conditions. The REIT has granted the underwriters a 30-day option to purchase up to an additional 405,000 shares of the stock at the public offering price to cover over-allotments, if any.
Global Medical REIT intends to use the proceeds from this offering for general corporate purposes, including funding new acquisitions, and repaying indebtedness.
It has been a few months since the REIT's last acquisition following a series of deals that the company closed in the preceding months. In addition, there has been a change in leadership at the company, namely Chairman of the Board of Directors Jeff Busch has taken over the role of CEO, effective immediately. The former CEO, David Young, resigned as CEO and from his position as a member of the board of directors, although he has been continuing as an employee of the company's external manager until September 19, 2017, after which he will serve as a consultant providing acquisition and business development services for the REIT. “Our Board of Directors determined that a change in leadership offered the best avenue for future success and thus we have made this move,” Busch said in a prepared statement.
Another personnel change occurred earlier in August when Robert Kiernan joined the company as CFO. He succeeded Donald McClure, who left to pursue other opportunities. Prior to joining the REIT Kiernan was the SVP, Controller and Chief Accounting Officer of FBR & Co. and earlier, Arlington Asset Investment Corp.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
