(By Balaseshan) Campus Crest Communities Inc. (NYSE:CCG), a real estate investment trust (REIT), said it has priced an underwritten public offering of 6.5 million shares of its common stock at $10.10 per share, a 5.7% discount to Tuesday's stock closing price.
Net proceeds is expected to be about $62.7 million, after deducting the underwriting discount and other net estimated offering costs.
The company also granted the underwriters of the offering a 30-day option to purchase up to an additional 975,000 shares of common stock. The offering is expected to close on or about July 2, 2012, subject to customary closing conditions.
The company plans to use the net proceeds from this offering to acquire the balance 50.1% ownership interest in The Grove at Moscow, Idaho and balance 80.0% ownership interest in The Grove at Valdosta, Georgia for $16.2 million and to repay about $27.3 million of mortgage debt secured by these properties.
The company also intends to use the net proceeds to reduce borrowings outstanding under its revolving credit facility, and any balance proceeds would be used for general corporate purposes.
Raymond James, Citigroup and Barclays are serving as joint book-running managers for the offering. RBC Capital Markets is serving as lead manager. Baird and Janney Montgomery Scott are serving as co-managers.
CCG is trading down 5.51% at $10.12 on Wednesday. The stock has been trading between $8.71 and $13.28 for the past 52 weeks.