Newton-based CommonWealth REIT says it has priced an underwritten public offering of $175 million in 5.75 percent unsecured senior notes due Aug. 1, 2042.
CommonWealth expects to use the net proceeds from the offering to redeem some or all of its outstanding 7 1/8 percent Series C cumulative redeemable preferred shares, repay outstanding debts under its revolving credit facility, and for general business purposes, including funding possible future acquisitions of properties.
The settlement of this offering is expected Wednesday. CommonWealth granted the underwriters an option to purchase up to $26.25 million of additional notes within 30 days to cover overallotments, if any.
CommonWealth intends to apply to list the notes on the New York Stock Exchange, and if approved, expects trading to begin within 30 days after the original issue date of the notes.
The joint book-running managers for this offering were Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, and Wells Fargo Securities, LLC. The joint lead managers for this offering were Jefferies & Co. Inc., and RBC Capital Markets LLC.
