PRIME RETAIL MAKES $26M ON OFFERING
NEW YORK — Prime Retail Inc., an owner, developer and manager of factory outlet centers, raised $26 million through a secondary offering of 2.08 million shares of common stock priced at $12.50 a share.
The firm also raised $4 million in the offering of 8.5 percent series B cumulative convertible preferred stock at $22.75 a share.
The net proceeds from the offering will be used to repay debt, to fund the construction of certain development projects and for general corporate purposes.
Friedman, Billings, Ramsey & Co Inc., Morgan Keegan & Co. Inc. and Stifel Nicolaus & Co. were underwriters in the offering. Prime Retail granted the underwriters an option, exercisable for 30 days, to purchase up to 312,000 additional shares of common stock.
As of Feb. 13, the Baltimore-based firm’s outlet portfolio included 24 outlet centers in 18 states, which totaled 6.1 million square feet of gross leasable area.
Separately, the company said it purchased Oak Creek Factory Outlets, Bend Factory Outlets and Coeur D’Alene Factory Outlets from an unrelated third party for $37.3 million. The company financed the purchase with loan proceeds from a financial institution and a $4 million promissory note issued to the seller.
Oak Creek, based in Sedona, Ariz., has 82,000 square feet of gross leasable area with merchants including Jones New York, Anne Klein, G.H Bass, Nine West and Van Heusen.