LOS ANGELES - Rexford Industrial Realty, Inc. (NYSE: REXR), a real estate investment trust (REIT), has initiated a public offering of common stock valued at $840 million. The transaction is structured as a forward sale agreement, with shares anticipated to be sold to a long-standing investor on the West Coast at a price per share corresponding to the closing price on the New York Stock Exchange on March 26, 2024.
The offering is managed by BofA Securities as the sole book-running manager. Under the terms of the forward sale agreement, BofA Securities or its affiliate, serving as the forward purchaser, is expected to borrow and sell $840 million worth of Rexford Industrial's common stock to the underwriter.
Still, there are conditions where the forward purchaser may not be required to borrow the shares, such as if borrowing costs are too high or specific conditions are unmet. If the forward purchaser or its affiliate does not sell all the shares, the number of shares under the forward sale agreement will be reduced accordingly, and Rexford Industrial will sell the remaining shares directly to the underwriter.
Rexford Industrial will not receive immediate proceeds from the forward purchaser's sale of shares. Instead, any cash proceeds received upon settlement of the forward sale agreement will be contributed to its operating partnership in exchange for common units.
The operating partnership plans to use these proceeds, along with those from a separate offering of Exchangeable Notes, for future acquisitions, development activities, and general corporate purposes.
The operating partnership also intends to offer $1 billion in exchangeable senior notes due in 2027 and 2029 to qualified institutional buyers, with a 30-day option for initial purchasers to cover over-allotments. These offerings are not contingent upon each other.
This offering is pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (SEC). A preliminary prospectus supplement and accompanying prospectus will be available on the SEC's website.
Rexford Industrial specializes in investing, operating, and redeveloping industrial properties in Southern California. The company's portfolio includes 374 properties with about 46.1 million rentable square feet.
This press release contains forward-looking statements subject to risks and uncertainties that could affect the actual outcomes. The information is based on a press release statement from Rexford Industrial Realty, Inc.
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