VIRGINIA BEACH, Va.--(BUSINESS WIRE)--Armada Hoffler Properties, Inc. (NYSE: AHH) today announced that it has priced an underwritten public offering of 6,000,000 shares of its common stock at a public offering price of $13.00 per share, for net proceeds, after the underwriting discount but before estimated expenses of the offering payable by the Company, of approximately $74.3 million.
The offering is expected to close on May 12, 2017, subject to customary closing conditions. The Company has granted the underwriters a 30-day option to purchase up to an additional 900,000 shares.
The Company intends to use the net proceeds from the offering to repay a portion of the indebtedness outstanding under its unsecured revolving credit facility, which amounts will then become available for future borrowing, including to fund its development pipeline and for general corporate purposes.
BofA Merrill Lynch and Stifel are serving as joint book-running managers for the offering. Baird and Raymond James are serving as joint bookrunners for the offering. Janney Montgomery Scott and Wunderlich are serving as co-managers for the offering.
Copies of the final prospectus supplement and accompanying prospectus related to these securities may be obtained, when available, from: BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, NC 28255-0001, Attn: Prospectus Department, or by e-mailing firstname.lastname@example.org; and Stifel, Attention: Syndicate Department, One South Street, 15th Floor, Baltimore, MD 21202, telephone: (855) 300‐7136, email: SyndProspectus@stifel.com.
The offering is being made pursuant to a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on May 5, 2017. A preliminary prospectus supplement relating to the offering was filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities in any state or other 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 other jurisdiction.
About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. is a full service real estate company with extensive experience developing, building, owning and managing high-quality, institutional-grade office, retail and multifamily properties in attractive markets primarily throughout the Mid-Atlantic and Southeastern United States. The Company has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. For example, the fact that the offering has priced may imply that the offering will close, but the closing is subject to conditions customary in transactions of this type and may be delayed or may not occur at all. In addition, the fact that the underwriters have an option to purchase additional shares may imply that this option will be exercised. However, the underwriters are not under any obligation to exercise this option, or any portion of it, and may not do so. Investors should not place undue reliance upon forward-looking statements. Completion of the offering on the terms described, and the application of net proceeds, are subject to numerous conditions, many of which are beyond the control of the Company, including, market conditions, general economic conditions and other factors, including those set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, and those set forth in other documents filed by the Company from time to time with the Securities and Exchange Commission.