W. P. Carey Raises $496.8M After Full 900,000-Share Greenshoe Exercise
W. P. Carey completed the full exercise of its underwriters’ option for 900,000 additional shares in its 6M-share public offering, boosting gross proceeds to $496.8M. Proceeds will fund potential acquisitions, repay revolving credit facility debt and support general corporate purposes, improving leverage ratios and underpinning FFO stability.
1. Underwriters Fully Exercise Option
W. P. Carey’s underwriters exercised their option to purchase 900,000 additional shares on February 24, expanding the original 6,000,000-share forward sale to 6,900,000 shares and closing the greenshoe feature.
2. Proceeds Raised and Allocation
The full exercise generated gross proceeds of $496.8 million, with net proceeds designated for potential future investments, repayment of outstanding debt including amounts under its unsecured revolving credit facility, and general corporate purposes.
3. Impact on Financial Position
The influx of capital is expected to enhance the REIT’s liquidity and improve its debt-to-EBITDA ratio, providing financial flexibility for acquisitions and supporting stable funds from operations in coming quarters.