Zacks_Analysts' Blog : Glimcher Completes Share Offer - Analyst Blog

Glimcher Realty Trust (GRT), a real estate investment trust (REIT), has recently completed its secondary offering of 14.8 million common shares at $8.30 per share, including 1.8 million shares sold to the underwriters to cover the over-allotment options.

BofA Merrill Lynch, the investment banking and wealth management division of Bank of America Corporation (BAC); Wells Fargo Securities, the investment banking division of Wells Fargo & Company (WFC); KeyBanc Capital Markets, the investment banking division of KeyCorp (KEY); and The Goldman Sachs Group, Inc. (GS) are acting as joint book-running managers for the offering.

Glimcher raised approximately $117 million of net proceeds from the offer. The company will utilize the proceeds to repay debt under its corporate credit facility. However, the company expects to borrow from the credit facility in future to provide funds for the acquisition of additional properties and fuel its development pipeline or for other corporate purposes. 

Based in Columbus, Ohio, Glimcher owns, leases, acquires, develops, and operates a portfolio of retail properties, including regional and super regional malls, as well as community shopping centers. The company owns 27 properties, including 23 malls and 4 community centers located in the states of Ohio, West Virginia, California, Florida, North Carolina, Pennsylvania, Kansas, Kentucky, Minnesota, New Jersey, Oklahoma, Oregon, Tennessee, and Washington.

We presently have a ‘Neutral’ recommendation on Glimcher, which currently has a Zacks #2 Rank that translates into a short-term ‘Buy’ rating and indicates that the stock is expected to outperform the overall U.S. equity market for the next 1–3 months.