Macerich Announces Pricing of Upsized Public Offering of Common Stock

Rhea-AI Summary

Macerich (NYSE: MAC) has priced an upsized public offering of 20 million shares of common stock at $19.75 per share, expecting to raise approximately $395 million in gross proceeds. The offering, increased from the initially announced 18 million shares, includes a 30-day option for underwriters to purchase up to 3 million additional shares. The company plans to use the proceeds, along with cash on hand, to repay a $478 million mortgage loan with a 9.0% fixed interest rate secured by its Washington Square property. The offering is expected to close on November 27, 2024.

Positive

• Repayment of high-interest mortgage loan (9.0%) with offering proceeds
• Successful upsizing of offering from 18M to 20M shares indicating strong demand
• Strategic debt reduction improving balance sheet structure

Negative

• Significant shareholder dilution with 20M new shares being issued
• Stock offering priced at $19.75 may pressure current share price
• Total funding need of $478M exceeds offering proceeds of $395M

SANTA MONICA, Calif., Nov. 25, 2024 (GLOBE NEWSWIRE) -- The Macerich Company (NYSE: MAC) (the “Company” or “Macerich”) announced today that it has priced an underwritten public offering of 20,000,000 shares of common stock at a price to public of $19.75 per share for expected gross proceeds of approximately $395.0 million. The Company has also granted the underwriters a 30-day option to purchase up to 3,000,000 additional shares of its common stock. This reflects an upsizing of the previously announced offering of 18,000,000 shares of common stock. Subject to customary closing conditions, the offering is expected to close on November 27, 2024.

The Company intends to use the net proceeds of this offering, together with cash on hand, including from recent sales under the Company’s “at the market” offering program, to repay the $478.0 million mortgage loan with a fixed effective interest rate of approximately 9.0% and which is secured by its Washington Square property. Pending such use, the Company may invest the net proceeds in short-term, interest-bearing deposit accounts.

Goldman Sachs & Co. LLC is serving as the lead bookrunner and representative of the underwriters of the offering. J.P. Morgan, Deutsche Bank Securities, BMO Capital Markets and TD Securities are also serving as joint bookrunning managers for the offering. Copies of the prospectus supplement and accompanying prospectus relating to these securities may be obtained, when available, by contacting: Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by email at Prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any such offer or sale will be made only by means of the prospectus supplement and prospectus forming part of the effective registration statement relating to these securities.

About the Company

Macerich is a fully integrated, self-managed, self-administered real estate investment trust (REIT). As a leading owner, operator, and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich’s portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 45 million square feet of real estate, consisting primarily of interests in 41 retail centers.

Forward-Looking Information

Information set forth in this press release contains “forward-looking statements” (within the meaning of the federal securities laws, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), which reflect the Company’s expectations regarding future events and plans, including, but not limited to, statements regarding the closing of the offering, the underwriters’ option to purchase additional shares of common stock and the Company’s anticipated use of net proceeds from the offering. Generally, the words “expects,” “anticipates,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “scheduled,” “predicts,” “may,” “will,” “should,” “could,” variations of such words and similar expressions identify forward-looking statements. The forward-looking statements are based on information currently available to us and involve a number of known and unknown assumptions, risks, uncertainties and other factors, which may be difficult to predict and beyond the control of the Company, which could cause actual results to differ materially from those contained in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the Company’s ability to close the offering including that the closing of the aforementioned offering is subject to, among other things, standard closing conditions and customary rights of the underwriters to terminate the underwriting agreement due to any material adverse change in the financial markets in the United States or the international financial markets, any outbreak of hostilities or escalation thereof or other calamity or crisis or any change or development involving a prospective change in national or international political, financial or economic conditions; the actual use of proceeds therefrom; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website at www.sec.gov. The Company disclaims any obligation to publicly update or revise any forward-looking statements contained in this press release whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law.

INVESTOR CONTACT: Samantha Greening, AVP, Investor Relations, Samantha.Greening@macerich.com

FAQ

What is the price per share for Macerich's (MAC) November 2024 stock offering?

Macerich priced its public offering at $19.75 per share.

How many shares is Macerich (MAC) offering in its November 2024 public offering?

Macerich is offering 20 million shares, with an option for underwriters to purchase an additional 3 million shares.

What will Macerich (MAC) use the proceeds from its 2024 stock offering for?

Macerich will use the proceeds to repay a $478 million mortgage loan with a 9.0% interest rate secured by its Washington Square property.

When will Macerich's (MAC) November 2024 stock offering close?

The offering is expected to close on November 27, 2024, subject to customary closing conditions.