PRINCETON, N.J. - Essential Properties Realty Trust , Inc. (NYSE: NYSE:EPRT), an internally managed real estate investment trust (REIT), has launched a public offering of 8 million shares of its common stock on a forward basis. The offering is being managed by BofA Securities, Wells Fargo (NYSE:WFC) Securities, Truist Securities, and Mizuho as joint book-running managers.
The company has arranged forward sale agreements with the joint book-running managers or their affiliates. These agreements pertain to the 8 million shares and provide the underwriters with a 30-day option to purchase up to an additional 1.2 million shares.
The forward purchasers are expected to borrow and sell these shares to the underwriters, although they are not obligated to do so under certain conditions, such as excessive borrowing costs or the inability to borrow the shares after reasonable efforts.
Essential Properties will not receive any immediate proceeds from the sale of shares by the forward purchasers. However, upon physical settlement of the forward sale agreements, which is expected within approximately 12 months from the date of the prospectus supplement, the company plans to issue and sell the shares to the forward purchasers. The net proceeds from this settlement will be contributed to the company's operating partnership in exchange for OP Units, which will be used for general corporate purposes, including potential future investments.
The sale of shares will be conducted in accordance with the company's effective shelf registration statement filed with the Securities and Exchange Commission (SEC).
Essential Properties owns and manages properties net leased on a long-term basis to service-oriented or experience-based businesses. As of the end of the previous year, the company's portfolio consisted of 1,873 properties across 48 states, leased to 374 tenants in 16 industries.
This article is based on a press release statement.
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