Lexington Realty Trust
), a NY-based diversified real estate investment trust (REIT),
declared the pricing of a public offering of senior notes worth
$250 million. Net proceeds accrued through this offering will be
utilized for general and corporate purposes as well as for
repayment of certain debts. Though the offering is subject to
certain routine closing conditions, it is expected to conclude by
May 20, 2014.
Lexington is engaged in the ownership, operation and management of
a diversified portfolio of equity and debt interests in
single-tenant commercial properties and land. It intends to grow
through acquisitions, sale-leaseback transactions and other deals.
During the first quarter of 2014, Lexington borrowed $99.0 million
under its five-year unsecured loan facility and was engaged in
repayment of secured debts as well. The company also converted
guaranteed notes into common shares in the quarter. The current
offering is not at all an extraneous idea. In fact, the aim to use
the proceeds to lower down the debt levels is perfectly in line
with the recent company strategy.
As per the announcement, Lepercq Corporate Income Fund L.P., an
operating partnership subsidiary of Lexington, will act as the
guarantor of this offering. J.P. Morgan Securities LLC and Wells
Fargo Securities will be the joint book-running managers. The
offering will be made under Lexington's existing automatic shelf
registration statement filed with the Securities and Exchange
Currently, Lexington carries a Zacks Rank #3 (Hold). Some
better-ranked equity REITs include
The GEO Group, Inc.
Rexford Industrial Realty, Inc.
Aviv REIT, Inc.
). While GEO Group and Rexford Industrial Realty sport a Zacks Rank
#1 (Strong Buy), Aviv holds a Zacks Rank #2 (Buy).
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AVIV REIT INC (AVIV): Free Stock Analysis
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