(By Balaseshan) Associated Estates Realty Corp. (NYSE:AEC), a real estate investment trust (REIT), said it intends to sell 5.5 million shares of its common stock in an underwritten public offering, sending its shares down 3.82% in aftermarket.
The company also intends to grant the underwriters a 30-day option to purchase up to an additional 825,000 of its common shares.
All of the shares will be offered by Associated Estates Realty and will be issued under the company's currently effective shelf registration statement filed with the Securities and Exchange Commission.
The company plans to use the net proceeds received from the offering to fund property acquisitions and development and for general corporate purposes. Pending application for the foregoing purposes, the company plans to use the net proceeds to temporarily repay borrowings outstanding under its unsecured revolving credit facility.
Wells Fargo Securities, Citigroup and BofA Merrill Lynch will serve as Joint Book-Running Managers for the offering. Jefferies and Raymond James will serve as Co-Lead Managers.
AEC closed Thursday's regular session down 1.91% at $14.92. The stock has been trading between $14.26 and $18.85 for the past 52 weeks.