Federal Realty up after $400 mln convertible financing
FRT•Shares rise after exchangeable note pricing
Shopping center REIT Federal Realty Investment Trust's FRT.N shares were up 0.8% to $118.91 on Friday after securing a capital raise.
North Bethesda, Maryland-based Federal Realty early Friday announced pricing of a private offering of $400 million of 3.5% exchangeable senior notes due Aug. 15, 2031.
The initial exchangeable price of $138.54 represents a 17.5% premium to the stock's last sale of $117.91 on Thursday.
Proceeds to repay debt and support general corporate purposes
Federal Realty's stock fell for a fourth straight session and finished down more than 3% on Thursday after the company unveiled the offering to repay debt and for general corporate purposes.
The company intends to use approximately $18.9 million of the proceeds to pay for capped calls; the initial cap price of $165.07 is 40% above the stock's last close.
Last week, Federal Realty raised its annual core FFO forecast on strong leasing demand and rent growth.
The stock is now up about 18% year to date, outpacing about a 12.5% advance in the S&P 500 Real Estate sector .SPLRCR.
The average rating of 19 analysts is "buy"; the median price target is $134, according to LSEG.
