Campus Crest Communities, Inc. Announces Pricing of Private Offering of $85 Million Exchangeable Senior Notes Due 2018
October 03 2013 - 6:01PM
Business Wire
Campus Crest Communities, Inc. (NYSE:CCG) (the “Company”)
announced today that Campus Crest Communities Operating
Partnership, LP, the operating partnership through which the
Company conducts its operations (the “Operating Partnership”), has
agreed to sell a private offering of $85 million aggregate
principal amount of its 4.75% Exchangeable Senior Notes due 2018
(“Notes”). The Operating Partnership granted the initial purchasers
a 30-day option to purchase up to an additional $15 million
aggregate principal amount of the Notes.
The Notes will be senior unsecured obligations of the Operating
Partnership. The Company will guarantee the payment of amounts due
on the Notes. The offering is expected to close on October 9th,
2013, subject to the satisfaction of certain closing
conditions.
Interest on the Notes will be payable semi-annually on April 15
and October 15, beginning April 15, 2014. The Notes will mature on
October 15, 2018, unless repurchased or exchanged in accordance
with their terms prior to such date.
Upon exchange of Notes, the Operating Partnership will deliver,
cash, shares of Campus Crest common stock or a combination of both,
at an initial exchange rate of 79.6020 shares per $1,000 principal
amount of notes (equivalent to an initial exchange price of
approximately $12.56 per share of Campus Crest common stock). At
any time prior to July 15, 2018, the operating partnership may
irrevocably elect, in its sole discretion without the consent of
the holders of the Notes, to settle all of its future exchange
obligation entirely in shares of Campus Crest common stock.
The Operating Partnership intends to use the net proceeds from
this offering for the repayment of debt, future development or for
other general corporate and working capital purposes.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the Notes, nor shall there
be any sale of such Notes in any state or other jurisdiction in
which such offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of such
state or other jurisdiction.
The Notes were offered and sold only to qualified institutional
buyers in reliance on Rule 144A under the Securities Act of 1933,
as amended (the “Securities Act”). Neither the Notes nor any shares
of the Company’s common stock that may be issued upon exchange of
the Notes have been registered under the Securities Act or any
state securities laws, and unless so registered, may not be offered
or sold in the United States except pursuant to an exemption from
the registration requirements of the Securities Act and applicable
state laws.
About Campus Crest Communities, Inc.
Campus Crest Communities, Inc. is a leading developer, builder,
owner and manager of high-quality student housing properties
located close to college campuses in targeted markets. It has
ownership interests in 80 student housing properties and ~43,000
beds across North America, of which 73 are operating and 7 are
development or redevelopment properties. The Company is an equity
REIT that differentiates itself through its vertical integration
and consistent branding across the portfolio through three unique
brands targeting different segments of the college student
population. The Grove® brand offers more traditional apartment
floor plans and focuses on customer service, privacy, on-site
amenities and a proprietary residence life program. The Copper
Beech brand and townhome product offers more residential-type
living to students looking for a larger floor plan with a front
door and back porch.
Forward-Looking Statements
This press release, together with other statements and
information publicly disseminated by the Company, contains certain
forward-looking statements 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 Company intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and includes this
statement for purposes of complying with these safe harbor
provisions. Forward-looking statements relate to expectations,
beliefs, projections, future plans and strategies, anticipated
events or trends and similar expressions concerning matters that
are not historical facts. In some cases, you can identify
forward-looking statements by the use of forward-looking
terminology such as "may," "will," "should," "expects," "intends,"
"plans," "anticipates," "believes," "estimates," "predicts" or
"potential" or the negative of these words and phrases or similar
words or phrases which are predictions of or indicate future events
or trends and which do not relate solely to historical matters. You
should not rely on forward-looking statements since they involve
known and unknown risks, uncertainties, assumptions and
contingencies, many of which are beyond the Company's control, that
may cause actual results to differ significantly from those
expressed in any forward-looking statement. All forward-looking
statements reflect the Company's good faith beliefs, assumptions
and expectations, but they are not guarantees of future
performance. Furthermore, except as otherwise required by federal
securities laws, the Company disclaims any obligation to publicly
update or revise any forward-looking statement to reflect changes
in underlying assumptions or factors, new information, data or
methods, future events or other changes. For a further discussion
of these and other factors that could cause the Company's future
results to differ materially from any forward-looking statements,
see the risk factors discussed in the Company's most recent Annual
Report on Form 10-K, as updated in the Company’s Quarterly Reports
on Form 10-Q.
Campus Crest Communities, Inc.Thomas Nielsen,
704-496-2571Investor.Relations@CampusCrest.com
Lehman Abs Mbna Capa (NYSE:CCG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Lehman Abs Mbna Capa (NYSE:CCG)
Historical Stock Chart
From Jul 2023 to Jul 2024