(By Balaseshan) Stag Industrial Inc. (NYSE:STAG), a owner of single-tenant industrial properties, said it has priced an underwritten public offering of 8 million shares at $14.15 apiece, a 4.1% discount to previous closing price.
The company granted the underwriters of the offering a 30-day option to purchase up to an additional 1.2 million shares of common stock. The offering is expected to close on August 15.
Stag Industrial plans to use the net proceeds of the offering to fund a portion of the anticipated $138.8 million purchase price of the STAG Investments II, LLC portfolio or other acquisitions currently under contract.
The company also intends to use the proceeds to repay indebtedness outstanding under its secured corporate revolving credit facility, to repay indebtedness outstanding under its Wells Fargo Master Loan, for general working capital purposes, or a combination of the foregoing.
Stag Industrial is authorized to issue up to 100 million common shares and 10 million shares of preferred stock. As of May 16, 2012, there were 15.997 million common shares issued and outstanding.
BofA Merrill Lynch, RBC Capital Markets and Wells Fargo Securities served as the joint book-running managers for the offering. Raymond James and UBS Investment Bank served as lead managers, and Evercore Partners served as co-manager.
STAG is trading down 2.98% at $14.32 on Friday. The stock has been trading between $9.80 and $16.04 for the past 52 weeks.