STAG Industrial, Inc. (NYSE: STAG) today announced the pricing of its public offering of an aggregate of 8,000,000 shares of its common stock on a forward basis in connection with the forward sale agreement described below, for gross proceeds of approximately $243.2 million. The forward purchaser (or its affiliate) and the Company have also granted the underwriters of the offering a 30-day option to purchase up to an additional 1,200,000 shares of common stock. The offering is expected to close on November 19, 2020, subject to customary closing conditions.
The Company intends to use the net proceeds it receives from the offering, if any, to fund acquisitions, to repay indebtedness outstanding under its unsecured credit facility (which was incurred to fund acquisitions and for working capital purposes), for working capital and other general corporate purposes, or a combination of the foregoing.
Citigroup, Jefferies and Raymond James served as the joint book-running managers for the offering.
In connection with the offering of shares of its common stock, the Company entered into a forward sale agreement with an affiliate of Citigroup Global Markets Inc., referred to in its capacity as the forward purchaser. In connection with such forward sale agreement, the forward purchaser (or its affiliate) is borrowing from third parties and selling to the underwriters 8,000,000 shares of the Company's common stock (or 9,200,000 shares if the underwriters' option is exercised in full and the Company elects to execute an additional forward sale agreement).
Pursuant to the terms of the forward sale agreement, and subject to its right to elect cash or net share settlement, the Company is obligated to issue and deliver, upon physical settlement of such forward sale agreement on one or more dates specified by the Company occurring no later than November 16, 2021 the number of shares of the Company's common stock underlying the forward sale agreement in exchange for a cash payment per share equal to the forward sale price under the forward sale agreement. The Company expects to physically settle the forward sale agreement and receive proceeds, subject to certain adjustments, from the sale of its shares of common stock upon one or more such physical settlements within approximately one year from the date of the prospectus supplement relating to the offering.
About STAG Industrial, Inc.
STAG Industrial, Inc. is a real estate investment trust focused on the acquisition, ownership and operation of single-tenant, industrial properties throughout the United States. As of September 30, 2020, the Company's portfolio consisted of 462 buildings in 38 states totaling approximately 92.3 million rentable square feet.
