PRINCETON, N.J. - Essential Properties Realty Trust , Inc. (NYSE:EPRT), a real estate investment trust (REIT), has upsized its public offering to 9 million shares at a price of $24.75 each, exceeding the initial offering of 8 million shares. The offering is scheduled to close on March 14, 2024, subject to standard closing conditions.
The company has entered into forward sale agreements with several financial institutions, including BofA Securities and Wells Fargo (NYSE:WFC) Securities, in relation to the offering. These agreements allow for the sale of the shares to the underwriters, with the option for the company to settle the agreements with cash or shares within approximately 12 months from the prospectus supplement date.
Underwriters have a 30-day option to purchase up to an additional 1.35 million shares. If exercised, Essential Properties plans to enter into further forward sale agreements corresponding to the additional shares.
The forward purchasers, or their affiliates, are expected to borrow and sell the shares to the underwriters. If they are unable to borrow the shares or if borrowing costs exceed a specified threshold, Essential Properties will sell the shares directly to the underwriters, reducing the number of shares involved in the forward sale agreements.
Essential Properties will not receive immediate proceeds from the sale of shares by the forward purchasers. Instead, any net proceeds from the settlement of the forward sale agreements will be contributed to its operating partnership in exchange for OP Units. The operating partnership will then utilize these funds for general corporate purposes, which may include future investments.
The offering is made under the company's existing shelf registration statement filed with the Securities and Exchange Commission (SEC).
Essential Properties specializes in acquiring and managing single-tenant properties net leased to service-oriented or experience-based businesses. As of the end of 2023, the company's portfolio was nearly fully leased with a diverse tenant base across various industries and states.
This article is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
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