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Real estate industry

First Potomac Realty Trust Announces Pricing of Follow-On Public Offering

Strategic Insights

— 1 min read

First Potomac Realty Trust, a real estate investment trust (REIT), has announced the pricing of a follow-on public offering of 3,000,000 common shares at $27.46 per share, with all shares offered by the company. The net proceeds of the offering, approximately $78.4 million, will be used to pay down the balance on its $125 million unsecured revolving credit facility and fund pending acquisitions. The underwriters have an option to purchase an additional 450,000 common shares to cover over-allotments.

Key Takeaways:

  • First Potomac Realty Trust has priced a follow-on public offering of 3,000,000 common shares at $27.46 per share, with all shares offered by the company.
  • The net proceeds of the offering, approximately $78.4 million, will be used to pay down the balance on its $125 million unsecured revolving credit facility and fund pending acquisitions.
  • The underwriters, led by KeyBanc Capital Markets, have a 30-day option to purchase an additional 450,000 common shares to cover over-allotments.
  • First Potomac's portfolio totals approximately 9.5 million square feet, with its largest tenant being the U.S. Government.
  • The company plans to use the net offering proceeds to fund its expansion and growth strategies in the Washington, D.C. metropolitan area and other major markets in Virginia and Maryland.
  • The offering will be made only by means of a prospectus and a related prospectus supplement.

Statistics:

  • 3,000,000 common shares are being offered by First Potomac Realty Trust at $27.46 per share.
  • The net proceeds of the offering are approximately $78.4 million.
  • The unsecured revolving credit facility balance to be paid down is $125 million.
  • The underwriters have an option to purchase an additional 450,000 common shares to cover over-allotments.
  • First Potomac's portfolio totals approximately 9.5 million square feet.
  • The company's largest tenant is the U.S. Government.

Sources:

  • First Potomac Realty Trust press release, dated [undisclosed]
  • Form 10-K, filed by First Potomac Realty Trust with the SEC
  • The Private Securities Litigation Reform Act of 1995
  • The Securities Exchange Act of 1934

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