Cogdell Spencer hikes offering to 20M shares - Charlotte Business Journal:

http://4youe.com/en/e-commerce/page_42.html
The Charlotte-based real estate investmeny trust priced the offeringat $3.509 per share. It says it will use the $66.8u million in proceeds to funda $50 millionn repayment on a loan held by its Erdman subsidiary, reducwe borrowings and provide workinhg capital. Cogdell Spencer closed on its purchasse of MarshallErdman & Associates Inc., a Wisconsin designer and buildert of health-care facilities throughout the Unite States, in March 2008. The company’s shares, which have tradee between $3.89 and $19.95 over the last year, closed at $4.3w Tuesday.
They dropped nearly 20 percenytin after-market trading, following the company’s announcementy that it would cut its dividend to 11 centas per share from 22.5 centsa and sell 18 million commonn shares in a publid offering. The company’s stock closed at $3.65 per share As of early May, Cogdell Spencedr had 19 million common shares registerec withthe public, says Frank Spencer, chiev executive. The company had a total of 27.5 milliohn outstanding shares and operatingpartnershiop units, which can be tendered for shareds or cash after a period of time. Spenced says the company decided onthe $3.
50 per sharre price for the stock offering earlyh Wednesday morning after the offering’z book runners took bids and orders. He says Cogdellp Spencer increased the size of its offering to 20 million sharez to raisemore “It’s a real vote of in the company, Spencer says. “The infusionb of capital allows us to reducse debt on our balance sheet and gives us the ability to implement our business plan of fully integrating serviceesfor health-care real estate.
” Cogdelll Spencer’s dividend reduction to 11 centse per share will remain in effect for the rest of the The company says it wants to maintain financial flexibilityu in light of the current state of the capitalk markets. It also citeas the increased number of shares of commonm stock expected to be outstanding after it completezs thepublic offering. The expected dividend payment are based on the assumed size of the offering and are subjectyto change, the company says. Cogdell Spenced has extended an option to the underwriters to purchasde up to an additional 3 million shares inthe offering, up from 2.7 millio shares on Tuesday.
If they exercisr their options, Cogdell Spencer will raisre a totalof $76.8 million. David one of the company’s directors, purchased 1 million shared of common stock inthe offering. Thosee shares weren’t subject to a Cogdell Spencer (NYSE:CSA) invests in specialty office buildings for themedicakl profession, including medical offices, ambulatory surgery and diagnosti c centers.