NEW YORK--(BUSINESS WIRE)--CapLease, Inc. (NYSE: LSE) announced today that it has priced an underwritten public offering of 2,000,000 shares of its 8.375% Series B Cumulative Redeemable Preferred Stock, at a public offering price of $25.00 per share. The offering is expected to close on April 19, 2012, subject to customary closing conditions. Dividends on the Series B Preferred Stock will be payable quarterly on or about the 15th day of January, April, July and October of each year, commencing July 16, 2012. The dividend rate is 8.375% per annum of the $25.00 liquidation preference, which is equivalent to $2.09375 per annum per share of Series B Preferred Stock. CapLease has granted the underwriters of the offering a 30-day option to purchase up to 300,000 additional shares of Series B Preferred Stock solely to cover over-allotments, if any.
CapLease intends to file an application to list the Series B Preferred Stock on the New York Stock Exchange under the symbol “LSEPrB.” If that application is approved, trading of the Series B Preferred Stock on the New York Stock Exchange is expected to begin within 30 days after the date of initial issuance of the Series B Preferred Stock.
CapLease estimates that the net proceeds from the offering, after deducting the underwriting discount and estimated offering expenses, will be approximately $48.3 million, excluding any net proceeds received if the underwriters exercise the over-allotment option. CapLease intends to use the net proceeds of the offering to fund future acquisitions and for other general corporate purposes.
The shares will be issued pursuant to a registration statement that has been declared effective by the Securities and Exchange Commission. A prospectus supplement and related prospectus relating to the offering have been filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the shares, nor shall there be any sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
Wells Fargo Securities, LLC and Citigroup Global Markets Inc. are the joint book-running managers of the offering. Stifel, Nicolaus & Company, Incorporated and Keefe, Bruyette & Woods, Inc. are acting as co-managers for the offering.
The offering may be made only by means of a prospectus supplement and the related prospectus. You may request copies of these documents by contacting Wells Fargo Securities, LLC, 1525 W.T. Harris Boulevard, NC0675, Charlotte, NC 28262, Attention: Capital Markets Client Support (telephone: (800) 326-5897 or email: cmclientsupport@wellsfargo.com and Citigroup Global Markets Inc., Attention: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220 (email: batprospectusdept@citi.com or telephone number (800) 831-9146).
This press release contains statements that are forward-looking. Such forward-looking statements involve risks and uncertainties and actual outcomes may differ materially from those projected. Factors that could causes actual results to differ materially from CapLease’s expectations include, but are not limited to, changes in capital markets and economic conditions, completion of the offering on the terms described in the registration statement, the prospectus supplement relating to the offering and the accompanying prospectus, and use of proceeds from the sale of the Series B Preferred Stock. For more information regarding these and other risks and uncertainties, review CapLease’s Annual Report on Form 10-K for the year ended December 31, 2011 and its other filings with the Securities and Exchange Commission.
About the Company:
CapLease, Inc. is a real estate investment trust, or REIT, that primarily owns and manages single tenant commercial real estate properties subject to long-term leases to high credit quality tenants.