Independence Realty Trust, Inc. (IRT) has announced a public offering of 10,000,000 shares of common stock, with an additional 30-day option for the underwriters to purchase up to 1,500,000 additional shares. The joint book-running managers for the offering are Citigroup, KeyBanc Capital Markets, and RBC Capital Markets, LLC.
In connection with the offering, IRT expects to enter into a forward sale agreement with Citigroup or one of its affiliates for 10,000,000 shares of its common stock, and potentially an additional 1,500,000 shares if the underwriters exercise their option in full.
The company will not initially receive any proceeds from the sale of shares by the forward purchaser or its affiliate in the offering. However, upon the future settlement of the forward sale agreements, IRT expects to contribute any cash net proceeds it receives to IRT’s operating partnership, Independence Realty Operating Partnership, LP (IROP), in exchange for common units in IROP.
The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (SEC), and will be made only by means of a prospectus supplement and an accompanying prospectus.
IRT aims to use the cash net proceeds to fund potential acquisitions and other investment opportunities, or for general corporate purposes, including the reduction of outstanding borrowings under IRT’s unsecured credit facility.
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities across non-gateway U.S. markets. The company's investment strategy is focused on gaining scale near major employment centers within key amenity-rich submarkets that offer good school districts and high-quality retail. Today the company's shares have moved -0.2% to a price of $20.06. If you want to know more, read the company's complete 8-K report here.
