Agree Realty Completes Stock Offering with Underwriters' Support
Agree Realty Completes Stock Offering Successfully
Agree Realty Corporation (ADC) has successfully completed its public offering, selling 5,060,000 shares of common stock. This announcement marks a pivotal moment for the company and reflects its ongoing strategic initiatives. The exercise of the underwriters' option to purchase additional shares shows a strong demand for Agree Realty’s stock, indicating a positive outlook from investors.
Details of the Offering
The offering included the total shares mentioned above, facilitated by Citigroup and Wells Fargo Securities, which acted as joint book-running managers. Notably, the forward sale agreements were crucial in this offering, allowing the company to engage in strategic financial maneuvering.
Forward Sale Agreements Explained
Agree Realty entered into forward sale agreements with Citibank and Wells Fargo Bank, collectively expecting to deliver 5,060,000 shares of common stock to these forward purchasers. This arrangement allows for a smooth transaction process where cash proceeds will correlate to the public offering price of $74.00 per share, enabling the company to strike a balance between immediate liquidity and long-term growth.
Use of Proceeds from the Offering
The anticipated net proceeds from this offering are earmarked for corporate needs, ranging from property acquisitions to paying down debt under the revolving credit facility. This strategic positioning is expected to enhance the company's operational capabilities and financial tenor, offering more robust growth opportunities.
Investor Information and Corporate Overview
Any interested parties wishing to obtain more detailed information on this offering can reach out to the respective offices of Citigroup Global Markets and Wells Fargo Securities. Additionally, it's important to note that this offering falls under an effective shelf registration statement with the Securities and Exchange Commission (SEC). Therefore, full transparency is maintained, aligning with regulatory requirements.
About Agree Realty Corporation
Agree Realty Corporation stands out as a top-tier real estate investment trust (REIT) focusing on the retail sector. The company's innovative approach emphasizes the acquisition and development of properties leased to premier omni-channel retail tenants. As of a recent reporting period, Agree Realty boasts a diverse portfolio of 2,271 properties across various locations, totaling approximately 47.2 million square feet of leasable area. The company's shares are actively traded on the New York Stock Exchange under the symbol 'ADC'.
Outlook for Investors
Given the current market dynamics, Agree Realty positions itself strategically to leverage changing consumer habits and retail landscapes. The ongoing demand for quality retail spaces places the company in a beneficial position for sustained growth. Investors are encouraged to keep abreast of the company's developments as it navigates an evolving market.
Frequently Asked Questions
What is the total number of shares involved in the offering?
The offering consisted of 5,060,000 shares of common stock.
What main purposes will the proceeds from the offering serve?
The net proceeds will primarily be used for corporate purposes such as funding property acquisitions and easing outstanding debt.
Who acted as the managers for the stock offering?
Citigroup and Wells Fargo Securities served as joint book-running managers for the offering.
What is the current stock symbol for Agree Realty Corporation?
The company's stock is listed on the New York Stock Exchange under the ticker symbol 'ADC'.
How does this offering affect investors?
This offering may provide investors with greater confidence in the company's financial strategies and future growth potential.
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