Parkway Properties, Inc.
), a real estate investment trust (REIT), has recently priced an
underwritten public offering of 13.5 million shares at $13.00
each, to increase its liquidity. The company has also decided to
grant the underwriters a 30-day option to purchase up to an
additional 1.2 million shares.
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Parkway Properties expects to rake in $170.5 million of net
proceeds from the share offering. The company intends to utilize
the proceeds to fund the acquisitions of NASCAR Plaza and 525
North Tryon in Charlotte, North Carolina; Phoenix Tower in
Houston, Texas; and Tower Place 200 in Atlanta, Georgia. The
remaining proceeds will be utilized to repay debt under its
senior unsecured revolving credit facility and for general
BofA Merrill Lynch, part of
Bank of America Corporation
); Wells Fargo Securities LLC, part of
Wells Fargo & Company
); and Barclays, part of
) are the joint book running managers for the offering.
As of September 30, 2012, cash and cash equivalents stood at
$53.6 million and total debt stood at $276.6 million. Subsequent
to end of third quarter 2012, Parkway properties exercised $25
million of the $160 million accordion feature of its existing
unsecured revolving credit facility and increased the capacity
from $190 million to $215 million.
Parkway Properties specializes in the ownership of office
properties in high-growth submarkets in the Sunbelt region of the
United States. As of November 1, 2012, the company had interest
in 38 office properties located in nine states with approximately
10.0 million square feet of leasable space.
Parkway Properties currently retains a Zacks #2 Rank, which
translates into a short-term Buy rating. We have a long-term
Neutral recommendation on the stock.