Gladstone Commercial Corp
) declared an underwritten public offering of 1.1 million shares.
Additionally, this real estate investment trust anticipates the
underwriters to be provided with a 30-day option to purchase up
to an additional 165,000 common shares to cover any
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The proceeds from the offering will be primarily utilized to fund
the pending and future property acquisitions, which shall include
the purchase of a 320,597 square foot office building in Texas.
Additionally, the proceeds would be used for the repayment of
debt and general business purposes.
The sole book-running manager for the offering is Janney
Montgomery Scott LLC. Alongside,
Oppenheimer Holdings Inc
) will serve as the joint lead manager.
Though the intention of repaying debt is encouraging as it will
lessen the company's interest expenses, the offering would result
in share dilution for Gladstone.
Earlier, in 2011, Gladstone Commercial declared the sale of one
million common shares through an underwritten public offering.
Some other firms that recently announced a public offering
Chatham Lodging Trust
). CommonWealth declared a public offering of 27 million
shares. The company also anticipates that the underwriters will
be provided a 30-day option to buy up to an additional 4 million
On the other hand, Chatham declared a public offering of 4.5
million common shares of beneficial interest, with a par value of
one cent per share. Further, to cover any over-allotments, the
company furnished a 30-day option to underwriters to buy up to an
additional 675,000 shares.
Gladstone currently carries a Zacks Rank #4 (Sell).