(By Balaseshan) Equity One Inc. (NYSE:EQY) said it has priced an underwritten public offering of 4.1 million shares at $21.20 apiece, a 1% discount to previous closing price.
Equity One is offering 3.1 million shares of its common stock and 1 million shares are being offered by the company's stockholder AH Investments US LP. Equity One will not receive any of the proceeds from the sale of shares by the selling stockholder in the offering.
The company granted the underwriter a 30-day option to purchase up to an additional 465,000 shares and the selling stockholder granted 150,000 shares. Barclays is acting as the sole underwriter of the offering.
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Equity One plans to use its net proceeds to reduce the outstanding balance under its unsecured revolving credit facility and for other corporate purposes, including pending and future acquisitions and to fund development and redevelopment activities.
The offering was made pursuant to the company's effective shelf registration statement and settlement is expected to occur on or about August 14, 2012.
In addition, MGN (USA) Inc. has agreed to purchase directly from the company an additional 500,000 shares at the public offering price in a private placement concurrently with the closing of this offering.
MGN is an entity affiliated with the company's largest stockholder, Gazit-Globe Ltd., and which may be deemed to be controlled by Chairman Chaim Katzman. Without giving effect to this offering or the concurrent sale, Katzman and his affiliates beneficially own and have voting power over about 47.6% of the outstanding shares.
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EQY is trading down 0.09% at $21.40 on Thursday. The stock has been trading between $14.57 and $22.16 for the past 52 weeks.