Nov. 6, 2009 (PR Newswire) --
SANTA ANA, Calif., Nov. 6 /PRNewswire-FirstCall/ -- Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced the completion of its $90 million offering of 900,000 shares of a new issuance of a 12 percent cumulative participating perpetual convertible preferred stock.
The company estimates that the proceeds from the offering were approximately $85 million after deducting estimated offering expenses and giving effect to the conversion of the $5 million of subordinated debt provided by an affiliate of the company's largest stockholder. The company intends to use the proceeds to repay in full its credit facility at the agreed reduced principal amount equal to approximately 65 percent of the principal amount outstanding under such facility. The balance of the offering proceeds will be used for general working capital purposes.
"We are extremely pleased with the outcome of this transaction," said C. Michael Kojaian, the company's chairman. "I have every confidence that Grubb & Ellis has the right strategy and management team in place to deliver on its long-term objective of growing the company while continuing to provide clients with comprehensive solutions to their real estate needs."
The convertible preferred stock was sold in a private placement to qualified institutional buyers and accredited investors. The company has also granted the initial purchaser and placement agent a 45-day option to purchase up to an additional 100,000 shares of preferred stock.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities (including the shares of common stock into which the securities are convertible) and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. Although certain of the purchasers of the preferred stock have the right to have their securities registered, the preferred stock and the underlying common stock issuable upon conversion have not been registered under the Securities Act or any applicable state securities laws and may not be offered or sold in the United States, absent registration or an applicable exemption from such registration requirements.
Additional terms and information with respect to the transaction will be included in a Current Report on Form 8-K that was filed with the Securities and Exchange Commission on Oct.
