Inland Real Estate (NYSE:IRC) is tapping the markets in order to win some new capital. The company announced the flotation of 9 million shares of its common stock in an underwritten public flotation. The price is $10.60 per share. Additionally, its underwriters have been granted a 30-day purchase option for up to an additional 1.35 million shares.
The firm estimates it will take in nearly $92 million in net proceeds from the offering, or slightly more than $105 million if the underwriters exercise their option in full. Inland Real Estate plans to use those funds to repay debt incurred from the $121 million purchase of 50% of the IN Retail Fund joint venture it did not formerly own.
Bank of America's (NYSE: BAC) Merrill Lynch, Wells Fargo's (NYSE: WFC) Securities unit, KeyCorp (NYSE: KEY) subsidiary KeyBanc Capital Markets, and Bank of Montreal's (NYSE: BMO) BMO Capital Markets are the joint book-running managers of the issue.
Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Wells Fargo. It owns shares of Bank of America and KeyCorp. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Annaly Capital Management Inc.'s Plan to Reward Shareholders
Annaly’s new subsidiary, Annaly Commercial Real Estate Group, is making headway, fast
Inland Real Estate Sets August Preferred Dividend
Retail shopping center operator also pays a dividend on its common stock.
Inland Real Estate Sets July Preferred Dividend
Retail shopping center owner also makes monthly payouts to holders of its common shares.