NEWTON, Mass.--(BUSINESS WIRE)--Select Income REIT (NYSE: SIR) today announced that it priced a public offering of 9,000,000 common shares at a price to the public of $29.00 per share. The settlement of this offering is expected to occur on May 20, 2014. SIR expects to use the proceeds of this offering to repay amounts outstanding under its revolving credit facility and for general business purposes, including possible future acquisitions of properties. The underwriters have been granted a 30-day option to purchase up to an additional 1,350,000 common shares.
The joint book-running managers for this offering are BofA Merrill Lynch, Morgan Stanley and UBS Investment Bank. The co-lead managers for this offering are Citigroup, Jefferies and RBC Capital Markets. The co-managers are Baird, BB&T Capital Markets, Janney Montgomery Scott, JMP Securities, MLV & Co. and Oppenheimer & Co.
This press release is neither an offer to sell nor a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The prospectus supplement relating to the offering and related prospectus are expected to be filed with the Securities and Exchange Commission, and copies can be obtained by contacting the offices of: BofA Merrill Lynch, Attention: Prospectus Department, 222 Broadway, New York, NY 10038, email: firstname.lastname@example.org; Morgan Stanley, Attention: Prospectus Department, 180 Varick Street, 2nd floor, New York, NY, 10014; or UBS Investment Bank, Attention: Prospectus Department, 299 Park Avenue, New York, NY 10171, telephone: (888) 827-7275.
SIR is a real estate investment trust, or REIT, which owns and invests in properties that are primarily net leased to single tenants. As of March 31, 2014, SIR owned 48 properties (278 buildings, leasable land parcels and easements) with a total of approximately 26.1 million square feet located in 20 states, including 11 properties (229 buildings, leasable land parcels and easements) with approximately 17.8 million square feet which are primarily leasable industrial and commercial lands located on the island of Oahu, HI. SIR is headquartered in Newton, MA.
WARNING CONCERNING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE INCLUDES FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON SIR’S PRESENT BELIEFS AND EXPECTATIONS, BUT THESE FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED. FOR EXAMPLE:
- THIS PRESS RELEASE STATES THAT THE COMPANY EXPECTS THE SETTLEMENT OF THE COMMON SHARES TO OCCUR ON MAY 20, 2014. IN FACT, THE ISSUANCE AND DELIVERY OF THE COMMON SHARES IS SUBJECT TO VARIOUS CONDITIONS AND CONTINGENCIES AS ARE CUSTOMARY IN UNDERWRITING AGREEMENTS IN THE UNITED STATES. IF THESE CONDITIONS ARE NOT SATISFIED OR THE SPECIFIED CONTINGENCIES DO NOT OCCUR, THIS OFFERING MAY NOT CLOSE.
- SIR'S CURRENT INTENT TO USE THE PROCEEDS OF THE OFFERING TO REPAY AMOUNTS OUTSTANDING UNDER ITS REVOLVING CREDIT FACILITY AND FOR GENERAL BUSINESS PURPOSES WILL BE DEPENDENT ON THE CLOSING OF THE OFFERING AND MAY NOT OCCUR.
- THIS PRESS RELEASE STATES THAT THE UNDERWRITERS HAVE BEEN GRANTED AN OPTION TO PURCHASE UP TO AN ADDITIONAL 1,350,000 COMMON SHARES. AN IMPLICATION OF THIS STATEMENT MAY BE THAT THIS OPTION MAY BE EXERCISED IN WHOLE OR IN PART. IN FACT, SIR DOES NOT KNOW WHETHER THE UNDERWRITERS WILL EXERCISE THIS OPTION, OR ANY PART OF IT.
FOR THESE REASONS, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.