Sun Communities Stock Offering to Yield $142 Million
Sun Communities Inc. announced Tuesday (Jan. 10) that it has priced an underwritten registered public offering of 4 million shares of its common stock at $35.50 per share. The sale will yield $142 million at the stated price.
As part of the offering, the company granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of its common stock. The offering is expected to close on Jan. 17, subject to customary closing conditions, Thomson Reuters reported.
The company intends to use the net proceeds of the offering to fund a portion of the purchase price of three recreational vehicle communities located in Florida that it agreed to acquire, as previously disclosed, and to repay outstanding debt. The company expects to use any remaining net proceeds of the offering to fund possible future acquisitions of properties and for working capital and general corporate purposes.
Sun Communities Inc. is a real estate investment trust based in Southfield, Mich., that owns and operates RV parks and mobile home communities.