General Growth (GGP) Commences 135M Common Offering
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General Growth Properties, Inc. (NYSE: GGP) announces that they are commencing a 135 million common offering.
Underwriters have been granted an option to purchase up to 20.25 million shares to cover any over-allotments.
GGP’s agreements with Brookfield Asset Management (“Brookfield”), Fairholme Funds, Inc. (“Fairholme”), Pershing Square Capital Management (“Pershing Square”) and Teacher Retirement System of Texas (“Texas Teachers”), which were an integral feature of GGP’s plan of reorganization, provide the company with the flexibility to replace $2.15 billion of the $6.8 billion in equity commitments, funded today by the plan sponsors in connection with GGP’s emergence from bankruptcy on more favorable terms through a clawback provision. New GGP will use the proceeds of the offering to fund this clawback. To the extent there are any excess proceeds, such proceeds will be used for general corporate purposes.
Goldman, Sachs & Co. and Deutsche Bank Securities are serving as joint global coordinators for the offering. Wells Fargo Securities, RBC Capital Markets, Barclays Capital, UBS Investment Bank and Morgan Stanley are serving as joint book-running managers for the offering, Macquarie Capital and TD Securities are serving as senior co-managers and Piper Jaffray is serving as co-manager.
Underwriters have been granted an option to purchase up to 20.25 million shares to cover any over-allotments.
GGP’s agreements with Brookfield Asset Management (“Brookfield”), Fairholme Funds, Inc. (“Fairholme”), Pershing Square Capital Management (“Pershing Square”) and Teacher Retirement System of Texas (“Texas Teachers”), which were an integral feature of GGP’s plan of reorganization, provide the company with the flexibility to replace $2.15 billion of the $6.8 billion in equity commitments, funded today by the plan sponsors in connection with GGP’s emergence from bankruptcy on more favorable terms through a clawback provision. New GGP will use the proceeds of the offering to fund this clawback. To the extent there are any excess proceeds, such proceeds will be used for general corporate purposes.
Goldman, Sachs & Co. and Deutsche Bank Securities are serving as joint global coordinators for the offering. Wells Fargo Securities, RBC Capital Markets, Barclays Capital, UBS Investment Bank and Morgan Stanley are serving as joint book-running managers for the offering, Macquarie Capital and TD Securities are serving as senior co-managers and Piper Jaffray is serving as co-manager.
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