Home Properties Inc. may sell up to 3.7 million common shares through an at-the-market equity offering program initiated with sales agents at Merrill Lynch Co. Inc., Pierce, Fenner & Smith Inc. and BMO Capital Markets Corp.
Net proceeds from the offering will be used at Home Properties for general corporate purposes, which may include working capital, the repayment of debt, capital expenditures, acquisitions, and development and redevelopment of apartment communities. The announcement was made Thursday after the market closed.
Edward Pettinella, CEO and president of the apartment real estate investment trust, said the equity offering program would provide Home Properties with the additional capacity to raise equity quickly and cost effectively.
“Home Properties’ three-year cash flow projection, published with third-quarter 2009 results, shows that the company believes it will end each year with more than adequate cash or line of credit levels to fund normal operations and the dividend,” Pettinella said in a statement.
Home Properties owns and operates more than 100 apartment communities, primarily in the Northeast, Mid-Atlantic and southeast Florida markets.
At midday, shares in the company (NYSE: HME) were trading at $46.01, up almost 1.6 percent, or 71 cents a share, from Thursday’s close.
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