Post Properties announced Wednesday that it will sell 3 million shares of its common stock to repay nearly $44 million in mortgage debt.
Atlanta-based Post, one of the country’s largest developers and operators of multifamily communities, is looking to repay approximately $39.4 million of existing mortgage debt secured by the company’s Post Fallsgrove property in Rockville, Md. The company will also incur a $4 million prepayment penalty in connection with the debt, according to a news release.
At the end of June, Post had approximately 44.39 million shares outstanding. The offering will add 7 percent more shares to those already outstanding.
Other net proceeds from the sale will be used for “general corporate purposes,” the release said, “which may include funding the company’s development pipeline or the repurchase of its outstanding preferred stock or senior unsecured notes.”
Underwriters of the sale will be “granted a 30-day option to purchase up to 450,000 additional shares of common stock to cover overallotments, if any,” the release said.
Trading closed at 19.28 Wednesday, but shares fell more than a dollar in early after-hours activity. MICHELLE E. SHAW
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