Gramercy Property Trust has executed definitive agreements for a private placement of 11,535,200 shares of common equity at a price of USD4.11 per share.
The private placement raised gross proceeds of USD47.4m.
Investors in the private placement received one contingent value right (CVR) per common share, which entitles the CVR holder to limited downside protection in the form of a one-time cash payment (not to exceed USD0.46 per share) in the event the company’s volume weighted average share price for the ten trading day period ending 25 March 2014 (“lock-up end date”) is less than USD4.11 per share.
The private placement investors have agreed not to sell the common shares that they receive in the private placement or the related CVRs prior to the lock-up end date.
The company anticipates closing the private placement on or about 7 October 2013.