Lexington Realty Trust (NYSE: LXP) has joined the waves of other companies raising capital by secondary stock offerings. The single tenant-REIT has priced an underwritten registered public offering of 20,000,000 common shares at a price of $11.70 per share. Lexington said that it plans to use approximately $137.9 million of the net proceeds from this offering to repay the outstanding debt under its unsecured revolving credit facility. The remainder of the proceeds will be used for general corporate purposes.
BofA/Merrill Lynch, Wells Fargo Securities, Jefferies and Barclays were fingered as the joint book-running managers for this secondary offering; co-lead managers named were J.P. Morgan and KeyBanc Capital Markets. Lexington also has granted this underwriting group a 30-day option to purchase up to an additional 3,000,000 common shares at the same terms as the offering.
Lexington closed at $12.05 on Monday against a 52-week range of $7.82 to $12.19. As far as the gross proceeds of $234 million, its pre-secondary market cap was $2.28 billion.
This trust pays roughly a 5% dividend yield to its investors as of the close, although that will be slightly higher as shares are down 2.7% at $11.72 this morning.