Spirit Realty makes NYSE debut at offering price
NEW YORK (AP) — Spirit Realty Capital's stock opened on the New York Stock Exchange at the $15 per share that they were priced at, which was below the company's initial range.
In early trading Thursday, the newly issued stock fell as low as $14.76, before recovering to trade up 15 cents at $15.15 by midday.
Spirit disclosed in a filing with the Securities and Exchange Commission earlier this month that it planned to price its initial public offering between $16 and $18 per share. Spirit said Wednesday it offered 29 million shares.
Based on the offering price at $15 apiece, Spirit Realty Corp. raised $435 million.
The real estate investment trust, which is selling all of the shares in the offering, is now giving the underwriters a 30-day option to buy up to an additional 4.4 million shares to cover any excess demand. It initially planned to allow the underwriters to buy up to 4.1 million shares.
The stock is trading under the "SRC' ticker symbol. The offering is expected to close on Tuesday.
Scottsdale, Ariz.-based Spirit said in its regulatory filing that once the offering closes, it will issue more shares to some of its existing lenders in exchange for $330 million of its outstanding term loan debt being extinguished. The company said it will also use part of the offering's net proceeds to pay back an additional $399 million of its outstanding term loan debt.