The offering means about $72.1 million in net proceeds for the company. Koger Equity plans to use the proceeds to fund its acquisition of the Rosemeade Building and CIGNA Plaza in Dallas, which closed today, as well as to pay down the company's secured revolving credit facility and for general corporate purposes.
The series A preferred stock has a $25- per-share liquidation value and will be redeemable at the company's option on or after Sept. 10, 2008.
"We are pleased to complete this offering, which further strengthens the company's capital structure," Koger Equity CEO Tom Crocker says in a statement. "As part of our long-term investment strategy of investing in markets with a diversified and growing economic base with proven liquidity, a stronger balance sheet provides us with additional resources to pursue future opportunities."
These shares are expected to be traded on the New York Stock Exchange beginning Oct. 10. The first dividend will be payable Dec. 15. Morgan Stanley was the offering's underwriter.
Koger Equity owns, operates and manages suburban office buildings in the southeastern United States and in Houston.
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