In order to facilitate lined up acquisition and pay off debt,
BioMed Realty Trust, Inc. (
recently priced its public offering of 15 million shares at
$21.40 per share. In a bid to cover over-allotments, this real
estate investment trust (REIT) will provide a 30-day option to
the underwriters for purchasing an additional 2,250,000 shares.
The transaction is expected to close by Apr 2, 2013.
A cluster of eminent bankers acted as book-running managers. This
includes - Morgan Stanley & Co. LLC of
Morgan Stanley (
, Wells Fargo Securities, Raymond James & Associates, Inc. of
Raymond James Financial, Inc. (
, KeyBanc Capital Markets Inc., UBS Securities LLC of
UBS AG (
BioMed Realty expects to generate around $321.0 million from this
offering. The net proceeds from the transaction is expected to be
utilized mainly for funding the proposed acquisition of Wexford
Science & Technology, LLC - a subsidiary of Wexford Equities,
LLC. Also, BioMed intends to use the proceeds to repay
outstanding debts under its unsecured credit facility and for
other general corporate purposes.
As a matter of fact, on Mar 26, BioMed Realty inked a definitive
deal to merge with Wexford Science & Technology, LLC. The
strategic deal was part of the company's goal to strengthen its
position as the leading real estate provider to the life science
industry. With the acquisition, BioMed Realty added 1.6 million
square foot portfolio of Wexford Science & Technology.
Post-acquisition, Wexford Science & Technology will operate
as a wholly owned subsidiary of BioMed Realty.
For BioMed Realty, though the public offering would result in
share dilution, the payment of debt is encouraging as it would
reduce interest expenses. Moreover, the opportunistic
acquisitions would help the company enhance its portfolio
quality, which in turn would be accretive to its earnings going
BioMed Realty focuses on providing real estate solutions to the
life science industry in the United States. Its tenants primarily
include biotechnology and pharmaceutical companies, scientific
research institutions, government agencies, and other entities
involved in the life science industry. Currently, BioMed Realty
has interests in properties comprising approximately 13.2 million
square feet of rentable space.
BioMed Realty currently retains a Zacks Rank #3 (Hold).
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