Cousins Properties Prices Public Offering of 9,500,000 Shares of Common Stock

Rhea-AI Summary

Cousins Properties (NYSE: CUZ) has announced the pricing of an underwritten public offering of 9,500,000 shares of its common stock. The offering is expected to generate gross proceeds of approximately $284 million before underwriting discounts and estimated offering expenses. The closing is anticipated for December 12, 2024, with J.P. Morgan serving as the sole book-running manager. The offering is being made through a prospectus supplement to the Company's prospectus dated May 8, 2024, as part of its effective shelf registration statement.

Positive

• Expected gross proceeds of $284 million to strengthen company's capital position

Negative

• Potential dilution of existing shareholders due to 9.5 million new shares being issued

Insights

Financial Analyst

This $284 million stock offering by Cousins Properties represents a significant capital raise that will dilute existing shareholders by approximately 5.8% based on the company's current market cap. The pricing and timing of this offering are notable, as REITs typically raise equity capital when they see attractive investment opportunities or need to strengthen their balance sheet. With J.P. Morgan as the sole book-runner, the deal's execution should be smooth, though the market's reaction will largely depend on the intended use of proceeds, which wasn't specified in the announcement. The offering's impact on the stock price could be negative in the short term due to dilution, but the long-term effect will hinge on how effectively management deploys this fresh capital.

Legal Expert

The offering's structured compliance with SEC regulations is evident through its execution under an existing shelf registration statement dated May 8, 2024. The company has taken appropriate legal precautions by including necessary disclaimers and making the required documentation available through multiple channels, including EDGAR and direct contact with the underwriter. The emphasis on state-specific securities laws compliance and the clear communication channels for prospectus access demonstrate strong regulatory adherence. This methodical approach to securities law compliance helps minimize legal risks associated with public offerings and provides transparency for potential investors.

ATLANTA, Dec. 11, 2024 /PRNewswire/ -- Cousins Properties Incorporated (the "Company") (NYSE: CUZ) today announced that it has priced an underwritten public offering of 9,500,000 shares of its common stock. 9,500,000 shares are being offered by the Company for expected gross proceeds of approximately $284 million before underwriting discounts and estimated offering expenses payable by the Company. Subject to customary conditions, the offering is expected to close on December 12, 2024.

J.P. Morgan served as the sole book-running manager for the offering.

This offering will be made pursuant to a prospectus supplement to the Company's prospectus dated May 8, 2024, filed as part of the Company's effective shelf registration statement relating to these shares. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the shares described herein or any other securities, nor shall there be any sale of these shares 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 offering may be made only by means of a prospectus supplement and the related prospectus.

Before you invest, you should read the prospectus supplement, the prospectus and other documents filed with the Securities and Exchange Commission for more complete information about the Company and this offering. You may get these documents for free by visiting EDGAR on the Securities and Exchange Commission website at www.sec.gov. Alternatively, a copy of the prospectus supplement and the prospectus relating to the shares can be obtained by contacting the underwriter as follows: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com.

About Cousins Properties

Cousins Properties is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta, GA and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office buildings located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets and opportunistic investments.

Forward-Looking Statements

Certain matters discussed in this press release are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risk and actual results may differ materially from projections, including matters related to the commenced public offering and intended use of proceeds. Readers should carefully review the Company's financial statements and notes thereto, as well as the risk factors described in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and in Part II, Item 1A of the Company's Quarterly Reports on Form 10-Q for the quarters ended June 30, 2024 and September 30, 2024, and other documents the Company files from time to time with the Securities and Exchange Commission. Such forward-looking statements are based on current expectations and speak as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

Contact:

Roni Imbeaux
Vice President, Finance and Investor Relations
Cousins Properties
404-407-1104
rimbeaux@cousins.com

View original content:https://www.prnewswire.com/news-releases/cousins-properties-prices-public-offering-of-9-500-000-shares-of-common-stock-302328635.html

SOURCE Cousins Properties

FAQ

How many shares is Cousins Properties (CUZ) offering in its December 2024 public offering?

Cousins Properties is offering 9,500,000 shares of its common stock in the December 2024 public offering.

What are the expected gross proceeds from CUZ's December 2024 stock offering?

The expected gross proceeds from the offering are approximately $284 million before underwriting discounts and estimated offering expenses.

When is the closing date for Cousins Properties' (CUZ) December 2024 stock offering?

The stock offering is expected to close on December 12, 2024, subject to customary conditions.

Who is the book-running manager for CUZ's December 2024 public offering?

J.P. Morgan served as the sole book-running manager for the offering.