W. P. Carey Raises $432 Million with 6 Million Share Offering
W. P. Carey issued 6,000,000 common shares on a forward basis, raising $432 million in gross proceeds and granting underwriters a 30-day option for 900,000 additional shares. Net proceeds will fund future investments, repay unsecured revolving credit facility debt and support general corporate purposes.
1. Public Offering Closure
W. P. Carey completed its underwritten public offering of 6,000,000 common shares on a forward basis, generating $432 million in gross proceeds. Underwriters received a 30-day option to purchase up to 900,000 additional shares.
2. Proceeds Allocation
The company intends to use net proceeds from the forward sale agreements to fund potential future investments, repay amounts outstanding under its unsecured revolving credit facility and support general corporate purposes.
3. Forward Sale Agreements
W. P. Carey entered into forward sale agreements with Bank of America and JPMorgan Chase Bank, obligating the company to deliver up to 6,900,000 shares upon physical settlement. Settlement may occur on one or more dates within 24 months, with the company electing cash or net share settlement.
4. Underwriters and Management
BofA Securities and J.P. Morgan served as joint book-running managers for the offering. An effective registration statement under the Securities Act enables the transaction to proceed under the related prospectus supplement.