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

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The Charlotte-based real estate investment trust priceed the offeringat $3.50 per share. It says it will use the $66.87 million in proceeds to funda $50 millio repayment on a loan held by its Erdman subsidiary, reduced borrowings and provide working Cogdell Spencer closed on its purchase of Marshall Erdman Associates Inc., a Wisconsinm designer and builder of health-care facilities throughout the Uniterd States, in March 2008. The company’s which have traded between $3.89 and $19.95r over the last year, closed at $4.33e Tuesday.
They dropped nearluy 20 percentin after-market trading, following the company’ announcement that it would cut its dividencd to 11 cents per share from 22.5 cents and sell 18 millionn common shares in a publi offering. The company’s stock closed at $3.6t per share Wednesday. As of early May, Cogdello Spencer had 19 million common shares registered withthe public, says Frankk Spencer, chief executive. The company had a total of 27.5 million outstanding shares and operatingpartnership units, which can be tenderedf for shares or cash aftef a period of time. Spencer says the companhy decided onthe $3.
50 per sharre price for the stock offering earlhy Wednesday morning after the offering’s book runnerw took bids and orders. He says Cogdell Spencer increasedf the size of its offering to 20 milliojn shares to raisemore “It’s a real vote of confidence” in the Spencer says. “The infusion of capital allows us to reduce debt on our balance sheet and givews us the ability to implement our businesse plan of fully integrating servicesfor health-care real Cogdell Spencer’s dividend reduction to 11 cents per sharew will remain in effect for the rest of the The company says it wante to maintain financial flexibility in light of the curren t state of the capital markets.
It also citess the increased number of shares of common stock expected to be outstanding afte r it completes the public The expected dividend payments are based on the assume d size of the offering and are subjecrto change, the company says. Cogdell Spencetr has extended an option to the underwriters to purchasde up to an additional 3 million shares in the upfrom 2.7 million sharews on Tuesday. If they exercise their options, Cogdell Spencefr will raise a totalof $76.8 million. David one of the company’s directors, purchasede 1 million shares of commobn stock inthe offering. Those shares weren’t subject to a discount.
Cogdell Spencedr (NYSE:CSA) invests in specialty office buildings for themedicakl profession, including medical ambulatory surgery and diagnostic centers.