Cogdell Spencer hikes offering to 20M shares - Puget Sound Business Journal (Seattle):

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The Charlotte-based real estate investmentr trust priced the offeringat $3.50 per It says it will use the $66.89 million in proceeds to fund a $50 million repaymengt on a loan held by its Erdman reduce borrowings and provide working capital. Cogdelk Spencer closed on its purchase of MarshallErdmahn & Associates Inc., a Wisconsin designer and buildeer of health-care facilities throughout the United States, in Marchh 2008. The company’s shares, which have traded betweenh $3.89 and $19.95 over the last closed at $4.33 Tuesday.
They droppecd nearly 20 percentin after-market trading, following the company’s announcement that it wouls cut its dividend to 11 cents per sharse from 22.5 cents and sell 18 million commojn shares in a public The company’s stock closed at $3.6r per share Wednesday. As of early May, Cogdell Spencee had 19 million common shares registered withthe public, says Frank chief executive. The company had a total of 27.5 millio n outstanding shares and operatingpartnershipp units, which can be tendered for shares or cash afterr a period of time. Spencer says the company decided onthe $3.
59 per share price for the stock offerinvg early Wednesday morning after the offering’s book runnersd took bids and orders. He says Cogdell Spenceer increased the size of its offering to 20 million shares to raisemore capital. “It’s a real vote of in the company, Spencer says. “Ths infusion of capital allows us to reduce debt on our balancs sheet and gives us the ability to implement our busineses plan of fully integrating servicesfor health-carwe real estate.
” Cogdell Spencer’s dividend reduction to 11 cente per share will remain in effect for the rest of the The company says it wants to maintaih financial flexibility in light of the currenyt state of the capita l markets. It also citea the increased number of shares of common stocjk expected to be outstanding afte it completes the public The expected dividend payments are basedr on the assumed size of the offeringf and are subjectto change, the company says. Cogdell Spencer has extendef an option to the underwriters to purchasw up to an additional 3 million sharesz inthe offering, up from 2.
7 million shares on If they exercise their options, Cogdell Spenced will raise a total of $76.8 million. Davic Lubar, one of the company’s directors, purchasedx 1 million shares of common stock in the Thoseshares weren’t subject to a discount. Cogdelkl Spencer (NYSE:CSA) invests in specialt y office buildings for the medical profession, including medical offices, ambulatory surgery and diagnostic centers.