Summary
Essex Property Trust, Inc. (ESS) announced on March 5, 2012, the entry into multiple equity distribution agreements. These agreements allow Essex to sell shares of its common stock and Series H Cumulative Redeemable Preferred Stock through "at-the-market" offerings or negotiated transactions. For common stock, Essex may offer up to an aggregate of 4,300,000 shares, leveraging an existing automatic shelf registration statement. For Series H Preferred Stock (carrying a 7.125% dividend rate), the company can offer up to 5,050,000 shares, contingent on the filing of a future prospectus supplement. These agreements establish distribution channels with several reputable financial institutions, including Cantor Fitzgerald & Co., KeyBanc Capital Markets Inc., Barclays Capital Inc., and others. The primary purpose of these arrangements is to provide Essex with flexibility to raise capital from time to time, likely to fund ongoing operations, development projects, or potential acquisitions in its portfolio of West Coast multifamily properties. Investors should note that the actual sales of stock under these agreements are subject to market conditions and the company's strategic decisions regarding capital needs.
Key Highlights
- 1Essex Property Trust entered into multiple equity distribution agreements on March 5, 2012.
- 2These agreements enable "at-the-market" or negotiated sales of common stock and Series H Preferred Stock.
- 3Up to 4,300,000 shares of common stock may be offered under these agreements.
- 4Up to 5,050,000 shares of 7.125% Series H Cumulative Redeemable Preferred Stock may be offered.
- 5Sales of preferred stock are subject to a future prospectus supplement filing.
- 6Distribution partners include Cantor Fitzgerald & Co., KeyBanc Capital Markets, Barclays Capital, BMO Capital Markets, Citigroup Global Markets, Liquidnet, Mitsubishi UFJ Securities, Janney Montgomery Scott, and MLV & Co.
- 7These agreements provide a mechanism for opportunistic capital raising.