wow…..
General Growth Properties, Inc. (NYSE: GGP) today announced the public offering of 135,000,000 shares of its common stock has been priced at $14.75 per share. The closing of the offering is expected to take place on November 19, 2010, subject to customary closing conditions. The underwriters have an option to purchase up to 20,250,000 additional shares of common stock from the company at the public offering price, less the underwriting discount.
GGP’s agreements with Fairholme Funds, Inc., Pershing Square Capital Management and Teacher Retirement System of Texas, which were an integral feature of GGP’s plan of reorganization, provide the company with the flexibility to replace up to $2.15 billion of the $6.8 billion in equity commitments, funded on November 9, 2010, by these plan sponsors on more favorable terms through a clawback provision. General Growth Properties will use the proceeds of the offering to fund this clawback. Proceeds in excess of the amount needed to fund the clawback will be used for general corporate purposes.
After giving effect to the offering and the exercise of the clawback, GGP will have approximately 940,040,000 shares of common stock outstanding, excluding previously granted warrants and stock options; excluding shares issuable upon conversion of operating partnership units; and without giving effect to the underwriters’ option to purchase additional shares. If the underwriters exercise their option to purchase additional shares in full, GGP will have approximately 940,290,000 shares of common stock outstanding.
This will replace the equity issued at $10.50 to Pershing, Fairholme and the Texas Teachers. It also means GGP has raised an additional $570M than what it exited Chapter 11 with.
Remember how we spoke incessantly since December of last year about the demand for shares post Chapter 11? This would be the start of it….