"It's an excellent time to monetize our investments in an excellent company," Dan Whitney of GE's Real Estate Unit tells GlobeSt.com, adding that "the retail market is still very attractive to us."
Security Capital has agreed to sell 18,596,832 shares of Regency common stock in an underwritten secondary offering. The shares are being sold to the public at $32.56 per share. The underwriters have a 30-day over-allotment option to purchase an additional 2,789,524 shares in connection with the offering.
Security has also entered into private sale agreements with certain underwriters for 7.2 million shares of Regency common stock in connection with the concurrent offering by Citigroup Global Markets Holdings Inc. of SynDECSSM linked to shares of Regency common stock. The underwriters have a 30-day over-allotment option to purchase an additional 1,080,000 shares in connection with the SynDECSSM offering.
In connection with these transactions, Regency will purchase 4,606,880 shares from Security Capital at the public offering price of $32.56 per share.
If the underwriters exercise the over-allotment options in full, Security will have sold or entered into private contracts to sell 34,273,236 shares, representing all of its holdings in Regency.
Citigroup Global Markets and Merrill Lynch & Co. acted as joint book runners and J.P. Morgan Securities Inc., UBS Securities LLC, and Wachovia Securities LLC acted as co-managers in the underwritten common stock offering. Citigroup Global Markets acted as sole book runner on the SynDECSSM offering, with Merrill Lynch & Co. acting as a joint lead manager.
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