CNLR's chief financial officer Kevin B. Habicht says the REIT expects to realize net proceeds of $95.6 million from the stock which was priced at $18 per share, its current trading price on the New York Stock Exchange. CNLR has given the underwriters an over-allotment option to buy up to 840,000 additional shares.
Citigroup Global Markets Inc. acted as sole book-running manager for the public offering. Wachovia Securities was the co-lead manager. A.G. Edwards & Sons Inc. and Legg Mason Wood Walker Inc. were the other co-managers.
The acquisition of the office buildings was also expected to be approved today by a US Bankruptcy Court judge. The former owner is MCI WorldCom Network Services, a unit of WorldCom Inc. which is working its way out of Chapter 11, according to court records.
The properties are leased to the US Transportation Security Administration. The acquisition marks retail-oriented CNLR's entry into the office market. The purchase price is being funded by a combination of equity capital and debt, Habicht says.
Shareholders of record on July 31 will be receiving a quarterly dividend of 32 cents per share on Aug. 15. The dividend represents an annualized rate of $1.28 per share. Habicht says Commercial Net Lease Realty has paid increased annual dividends per share for 13 consecutive years.
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