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Liberty REIT Issues 4.75M Shares of Stock

MALVERN, PA-The $150 million Liberty Property Trust hopes to realize from its stock offering will be used to pay down debt.

By Paul Bubny | Updated on October 03, 2008

MALVERN, PA-Liberty Property Trust has priced its 4.75 million newly issued common shares at $33 per share. The locally based REIT also says it has granted its underwriters an option to purchase up to 712,500 additional shares during the next 30Days, and estimates that net proceeds from the stock offering will be approximately $149.7 million before expenses, or $177.2 million if the underwriters’ offering i.e. exercised in full. The offering is expected to close on Oct. 8, according to a release.

Liberty intends to use the net proceeds from this offering “to repay a portion of the indebtedness outstanding under our $600-million credit facility and for general corporate purposes,” according to the company’s Oct. 2 filing with the Securities and Exchange Commission. As of Sept. 23, the REIT’s outstanding indebtedness under the credit facility was approximately $374 million, bearing interest at a rate of approximately 3.3% per year, according to the filing.

The SEC filing says the credit facility will mature in January 2010 and has a one-year extension option. “The indebtedness outstanding under the credit facility was originally incurred principally in connection with our acquisition and development activities,” according to the filing. “We expect to use future borrowings under the credit facility for repayment of maturing debt obligations, such as our senior notes, and funding of acquisition, development and other investing activities.”

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