EastGroup Properties (NYSE: EGP) Enters into Sales Agreement for up to $1 Billion in Stock Offerings

by · The Markets Daily

EastGroup Properties, Inc., a Maryland-based real estate investment trust, announced on October 25, 2024, that it has entered into a sales agency financing agreement. This agreement, referred to as the Sales Agreement, involves a consortium of Sales Agents, Forward Sellers, and Forward Purchasers, including firms such as Robert W. Baird & Co. Incorporated, BofA Securities, Inc., and J.P. Morgan Securities LLC.

Under this agreement, EastGroup Properties may offer and sell shares of its common stock with an aggregate offering price of up to $1 billion. The offering will be conducted through at-the-market offerings or other transactions, with the Sales Agents handling the sales. The Sales Agreement allows for a commission of up to 1.5% of the gross sales price of all shares sold through the Sales Agents.

This initiative follows the termination of EastGroup Properties’ previous at-the-market program, which had around $3.8 million in unsold shares at the time of termination. Additionally, the company entered into eight Master Forward Confirmations on the same day as part of this arrangement.

The company indicates that the sales of these shares may occur through various methods permitted by law, including ordinary brokers’ transactions, negotiated transactions, or other means compliant with at-the-market offering regulations. EastGroup Properties retains the flexibility to determine the timing and amounts of the share sales and may suspend offers under the Sales Agreement at any time.

The net proceeds from this offering are intended for general corporate purposes, which may involve working capital, debt repayment, or funding acquisitions or developments in the industrial property sector.

EastGroup Properties emphasized that this Sales Agreement does not serve as a direct offer to sell or a solicitation to buy its securities. The effective shelf registration statement dated December 16, 2022, and the prospectus supplement submitted on October 25, 2024, support the issuance of these shares, in compliance with regulatory requirements.

To ensure compliance with legal standards, the company has included the Sales Agreement, Forward Confirmations, and an opinion of counsel in the Form 8-K filing. EastGroup Properties also highlights its commitment to adhere to all necessary securities laws in the jurisdictions where these offerings may take place.

The company’s Chief Financial Officer and Treasurer, Brent W. Wood, duly signed off on the Form 8-K to comply with the Securities Exchange Act of 1934 requirements.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read EastGroup Properties’s 8K filing here.

EastGroup Properties Company Profile

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EastGroup Properties, Inc (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 1000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina.

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