Hudson Pacific Properties just came out with a new prospectus, available here. This is an SEC requirement for firms looking to issue certain types of securities. An excerpt of the prospectus is provided below:
We estimate that the net proceeds that we will receive from this offering will be approximately $296.3 million, or approximately $340.8 million if the underwriters option to purchase additional shares is exercised in full, in each case based on an assumed public offering price of $36.35 per share (which is the last reported sale price of our common stock on the NYSE on February 24, 2017) and after deducting estimated underwriting di scounts and commissions and our estimated offering expenses. Each $1.00 increase or decrease in the assumed public offering price of $36.35 per share would increase or decrease the net proceeds that we receive from this offering by $8.2 million, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus supplement, remains the same, and after deducting estimated underwriting discounts and commissions. We will contribute the net proceeds that we receive from this offering to our operating partnership in exchange for common units.
Our operating partnership intends to use the net proceeds from this offering to finance the acquisition of Hollywood Center Studios and, to the extent there are excess net proceeds or if such acquisition is not completed, to fund development and redevelopment activities, potential acquisition opportunities and/or for general corporate purposes. Pending these applications, our operating partnership intends to use the net proceeds to temporarily repay the entire approximately $255.0 million of outstanding borrowings under our revolving credit facility and/or invest in interest-bearing accounts and short-term, interest-bearing securities in a manner that is consistent with our intention to qualify for taxation as a REIT.
As of February 27, 2017, we have approximately $255.0 million outstanding under our revolving credit facility. Our revolving credit facility currently bears interest at a rate per annum equal to either LIBOR plus 115 to 185 basis points or a specified base rate plus 15 to 85 basis points, depending on our leverage ratio, and has a maturity date of April 1, 2019 (which maturity may be extended for an additional year at our option subject to certain conditions). If we obtain a credit rating for our senior unsecured long-term indebtedness, we may make an irrevocable election to change the interest rate for our revolving credit facility to a rate equal to either LIBOR plus 87.5 to 155 basis points per annum or the specified base rate plus 0 to 55 basis points per annum, depending on the credit rating. Any borrowings under our revolving credit facility that are repaid with net proceeds from this offering may be reborrowed, subject to customary conditions.
Affiliates of Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC, Goldman, Sachs & Co., KeyBanc Capital Markets Inc., Barclays Capital Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC (underwriters in this offering) are lenders under our revolving credit facility and/or certain of our term loans. See UnderwritingOther Relationships. To the extent that we use a portion of the net proceeds of this offering to repay borrowings outstanding under our revolving credit facility, such affiliates of the underwriters will receive their proportionate shares of any such amount.
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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