Thomas Properties Announces Stock Sale

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Thomas Properties Group Inc. said it signed an agreement with some institutional investors to sell 5.14 million shares of its common stock, with proceeds to pay down debt. The company also is suspending regular quarterly dividends for the time being to conserve money.

The Los Angeles real estate investment company said over the weekend that the negotiated price of the stock was $2.55 per share through a registered direct offering. The transaction is expected to provide proceeds of about $13.1 million.

Thomas Properties, which acquires, develops, and manages office, mixed-use, and residential properties, said the money will be used in a discounted payoff of mezzanine indebtedness on its Two Commerce Square property that is scheduled to mature in January.

Chief Executive James A. Thomas said the board will consider resuming dividends when economic and market conditions improve.

“Maintaining liquidity is our highest priority; and as a consequence of current market limitations on the availability of capital, our board felt this was an appropriate action to preserve cash,” Thomas said in a statement.

After earlier dropping 9 percent, Thomas Properties shares closed down 14 cents, or 5 percent, to $2.49 on the Nasdaq.

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