Pacific Office Plans Stock Sale

0

Pacific Office Properties Trust Inc. said Friday that it filed plans with the Securities and Exchange Commission to sell up to $350 million in shares of Class B common stock.

The Los Angeles real estate investment trust said up to $300 million of shares would to be sold to the public at $10 per share, and up to $50 million in shares would be issued pursuant to a dividend reinvestment program at a price of $9.50 per share. The program will allow investors to receive shares in lieu of a cash dividend.

The Class B common stock will rank senior to the company’s Class A common stock and the ownership interests in the company’s operating partnership, a common arrangement in REITS. Class B stockholders will receive a minimum dividend of 70 cents per share.

Pacific Office specializes in commercial office properties in the western United States. The proceeds primarily will be used to take advantage of investment opportunities in depressed commercial office markets, including Los Angeles, San Diego, Honolulu and Phoenix.

“The proceeds from (this) offering will provide us with an attractive source of equity capital to take advantage of what we believe will be an exceptional investing environment,” said Chief Executive Dallas E. Lucas in a statement.

Pacific Office Properties common shares closed down 2 percent to $5.28 on Friday.

No posts to display