Lexington Realty Trust
), a real estate investment trust (REIT), has recently announced
its decision to offer 15 million shares at $9.45 each to
enhance its liquidity. The company has also decided to grant the
underwriters a 30-day option to purchase up to an additional 2.25
million shares to cover any over-allotment options. The offering is
expected to close on October 15, 2012.
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Lexington Realty intends to utilize the net proceeds from the
offering to repay debt outstanding on its secured credit facility,
debt assumed in the Net Lease Strategic Assets Fund L.P.
acquisition, and for general corporate purposes.
Wells Fargo Securities LLC, part of
Wells Fargo & Company
); BofA Merrill Lynch, part of
Bank of America Corporation
); Jefferies, part of
Jefferies Group, Inc
); and Key Banc Capital Markets, part of
) are the joint book running managers for the offering.
As of June 30, 2012, Lexington Realty had $206 million outstanding
on term loans. Cash and cash equivalents stood at $50.2 million at
the end of second quarter 2012. The company aims to refinance its
debts at substantially lower rates and capitalize on all favourable
disposition and acquisitions opportunities.
Based in New York, Lexington Realty invests and manages
single-tenant office, industrial and retail properties leased to
major corporations throughout the United States. It provides
investment advisory and asset management services to investors in
the net lease area.
Lexington Realty currently retains a Zacks #2 Rank, which
translates into a short-term Buy rating. We also have a long-term
Outperform recommendation on the stock.