Preferred Apartment Communities, Inc. (NYSE:APTS) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
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Entry into a Material Definitive Agreement.
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“Company”) entered into an underwriting agreement (the
“Underwriting Agreement”) with Deutsche Bank Securities Inc., as
representative of the underwriters named in the Underwriting
Agreement (the “Underwriters”) with respect to the underwritten
public offering (the “Offering”) of 2,750,000 shares (the
“Shares”) of common stock, par value $0.01 per share, of the
Company (the “Common Stock”), at a public offering price of
$15.25 per share, which was determined in negotiations with the
Underwriters based on the closing price per share of the Common
Stock on May 8, 2017. On May 8, 2017, the closing price of our
common stock on the NYSE was $15.87 per share. The Company expects
to consummate the Offering of the Shares, and the Underwriters
expect to deliver the shares of Common Stock to purchasers, on or
about May 12, 2017. to the Underwriting Agreement, the Company also
granted the Underwriters a 30-day option to purchase up to 412,500
additional shares of Common Stock.
approximately $40.2 million, after deducting underwriting discounts
and commissions and before estimated expenses of the Offering (or
approximately $46.2 million if the Underwriters exercise their
option to purchase additional shares of Common Stock in full). The
Company intends to use the net proceeds from the Offering,
including net proceeds from any exercise by the Underwriters of
their option to purchase additional shares of Common Stock, to
repay outstanding indebtedness under the Companys existing senior
secured revolving credit facility, and any remainder for other
general corporate purposes, including making investments in
accordance with the Companys investment objectives.
warranties and covenants by the Company. It also provides for
customary indemnification by each of the Company and the
Underwriters against certain liabilities and customary contribution
provisions in respect of those liabilities. The consummation of
this Offering is subject to customary conditions.
effective shelf registration statement filed with the Securities
and Exchange Commission (the “SEC”) on Form S-3 (File No.
333-211178). A prospectus supplement relating to the Offering has
been filed with the SEC.
Agreement which is filed as Exhibit 1.1 to this Form 8-K and is
incorporated herein.
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1.1
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Underwriting Agreement dated as of May 8, 2017 between
Preferred Apartment Communities, Inc. and Deutsche Bank Securities Inc., as representative of the Underwriters named therein. |
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5.1
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Opinion of Venable LLP
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23.1
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Consent of Venable LLP (included in Exhibit 5.1)
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About Preferred Apartment Communities, Inc. (NYSE:APTS)
Preferred Apartment Communities, Inc. is a real estate investment trust (REIT). The Company is formed primarily to acquire and operate multifamily properties in select-targeted markets throughout the United States. It operates through three segments: multifamily communities, retail and real estate related financing. The multifamily communities segment consists of owned residential multifamily communities. It owns approximately 20 multifamily communities with a total of over 6,140 units in over eight states. The retail segment consists of owned grocery-anchored shopping centers. The Company owns over 31 grocery-anchored centers across over seven Sunbelt states. It owns Champions Village, a Randalls-anchored shopping center. The financing segment consists of a portfolio of real estate loans, bridge loans and other financial instruments, which partially finance the development, construction and prestabilization carrying costs of multifamily communities and other real estate assets. Preferred Apartment Communities, Inc. (NYSE:APTS) Recent Trading Information
Preferred Apartment Communities, Inc. (NYSE:APTS) closed its last trading session up +0.04 at 14.95 with 402,821 shares trading hands.
