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Reckson Prices Offering, Faces Audit

MELVILLE, NY-Reckson Associates prices a 5.5-million share stock offering as the Internal Revenue Service audits the locally based firm.

By Barbara Jarvie | Updated on March 14, 2004

MELVILLE, NY-Capitalizing on its stock market uptick, the locally based Reckson Associates prices a 5.5-million share offering of common stock at $27.35 with Citigroup Global Markets Inc. Company CEO Scott Rechler plans to purchase approximately 45,000 shares. He tells GlobeSt.com this is in line with his strategy. “I have been increasing my position in the company over the last nine months,” he wrote in an e-mail. Other board members will purchase 15,000 shares. Net proceeds will be used to repay $100 million of debt, repay borrowings and for general corporate purposes.

Pursuant to the underwriting agreement, Citigroup has been granted a 30-day over-allotment option to purchase up to an additional 825,000 common shares.

The company noted that the Internal Revenue Service is auditing the operating partnership’s 2001 return. Rechler says he is “surprised by the attention this matter seems to be receiving” and that he believes this to be an “ordinary course selection by the IRS. The IRS has not identified any matter of concern nor has the examination process even commenced. We included this matter in our 10k consistent with our transparent disclosure policy.”

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