Paramount Group, Inc. Prices Initial Public Offering

NEW YORK--()--Paramount Group, Inc. (the “Company”), a Maryland corporation organized to qualify as a real estate investment trust focused on owning, operating and managing high-quality, Class A office properties in select central business district submarkets of New York City, Washington, D.C. and San Francisco, announced today the pricing of its initial public offering of 131,000,000 shares of its common stock at a public offering price of $17.50 per share. The Company's common stock is expected to begin trading on November 19, 2014 on the New York Stock Exchange under the symbol “PGRE.” The offering is expected to close on November 24, 2014, subject to customary closing conditions. The Company has granted the underwriters a 30-day option to purchase up to an additional 19,650,000 shares of common stock at the public offering price, less the underwriting discount, to cover over-allotments, if any.

The net proceeds of the offering are estimated to be approximately $2.1 billion after deducting underwriting discounts and commissions and estimated offering expenses, prior to any exercise of the underwriters’ over-allotment option. The Company intends to use the net proceeds from the offering to repay outstanding indebtedness and any applicable prepayment costs, exit fees, defeasance costs and settlement of interest rate swap liabilities associated with such repayment and to pay cash consideration in connection with its formation transactions. The Company expects to use any remaining net proceeds for general corporate purposes, capital expenditures and potential future acquisitions.

BofA Merrill Lynch, Morgan Stanley and Wells Fargo Securities are acting as active joint book-running managers of the offering. The offering of these securities is being made only by means of a prospectus. Copies of the prospectus can be obtained from: BofA Merrill Lynch, 222 Broadway, New York, New York 10038, Attention: Prospectus Department, or by e-mail at dg.prospectus_requests@baml.com; Morgan Stanley, 180 Varick Street, New York, New York 10014, Attention: Prospectus Department; or Wells Fargo Securities, 375 Park Avenue, New York, New York 10152, Attention: Equity Syndicate, or by e-mail at cmclientsupport@wellsfargo.com, or by phone at (800) 326-5897.

A registration statement on Form S-11 relating to these securities was declared effective by the Securities and Exchange Commission (the “SEC”) on November 18, 2014. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the offered securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Paramount Group, Inc.

Paramount Group, Inc. is a Maryland corporation organized to qualify as a real estate investment trust focused on owning, operating and managing high-quality, Class A office properties in select central business district submarkets of New York City, Washington, D.C. and San Francisco. Upon completion of its initial public offering and related formation transactions, the Company’s portfolio will consist of 12 Class A office properties aggregating approximately 10.4 million square feet.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including statements related to the closing of the initial public offering and the expected use of the net proceeds therefrom. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and could materially affect actual results, performance or achievements. These factors include, without limitation, that the closing of the aforementioned offering is subject to, among other things standard closing conditions and customary rights of the underwriters to terminate the underwriting agreement due to any material adverse change in the financial markets in the United States or the international financial markets, any outbreak of hostilities or escalation thereof or other calamity or crisis or any change or development involving a prospective change in national or international political, financial or economic conditions, and other risks and uncertainties detailed in the Company’s registration statement on Form S-11, as amended, filed with the SEC or other risks described in documents subsequently filed by the Company from time to time with the SEC.

Contacts

Paramount Group, Inc.
Investor Relations:
(212) 492-2298
IR@paramount-group.com
or
Media:
(212) 492-2285
PR@paramount-group.com

Contacts

Paramount Group, Inc.
Investor Relations:
(212) 492-2298
IR@paramount-group.com
or
Media:
(212) 492-2285
PR@paramount-group.com