Bay Apartment Communities announces sale of 1,662,000 shares of common stock.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--April 23, 1997--Bay Apartment Communities, Inc. (NYSE/PCX Symbol: BYA) announced today that it has entered into an agreement to sell 1,662,000 shares of common stock to two institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. at a price per share of $36.125. The sale is scheduled to close today. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to Bay, after all anticipated issuance costs and commissions, will total approximately $58.7 million. The net proceeds per share from this offering will be approximately $35.34 compared with approximately $35.19 in net proceeds per share received in the company's last offering, which occurred in January, 1997. Bay intends to use the proceeds of the offering to repay borrowings under its unsecured line of credit, which were used to fund the acquisition and development of additional apartment communities, including approximately $9.7 million, $28 million and $6 million borrowed in connection with the acquisition of The Village Apartments, the Banbury Cross Apartments and the Cardiff Gardens apartment home community, respectively. "We were able to complete this offering quickly and on highly favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms," said Gilbert M. Meyer, chairman and chief executive officer of Bay. "This transaction further strengthens our balance sheet, already one of the strongest among multifamily real estate investment trusts, and provides us additional resources to fund expansion of our portfolio," he added. Bay Apartment Communities is a fully integrated, multifamily real estate investment trust focused on the acquisition, development, construction, reconstruction and management of high quality apartment home communities. The company owns 38 apartment communities containing 9,839 apartment homes. The company's portfolio consists of 32 apartment home communities in the San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay and Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern and six communities in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained in this release are statements that involve risks and uncertainties, including, but not limited to, market demand, the effect of economic conditions, the impact of competition and competitive pricing, changes in construction scope or cost, the result of financing efforts, actual purchases under agreements, the effect of the company's accounting policies and other risks detailed in the company's Securities and Exchange Commission filings. CONTACT: Gilbert M. Meyer, Max L. Gardner or Jeffrey B. Van Horn 408/983-1500 |
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