Equity Residential (NYSE: EQR), today announced that the company has
created an At-The-Market (ATM) share offering program through which it
could sell up to 17 million common shares. The shares would be offered
through BofA Merrill Lynch, J.P. Morgan and Morgan Stanley, who will be
acting as sales agents.
"With more than $800 million of cash, $1.36 billion of availability
under our credit facility and the continued ability to sell non-core
assets, we see no immediate need to sell common shares,” said David J.
Neithercut, Equity Residential’s President and CEO. "This program will,
however, allow us to quickly access the equity market should that
capital be necessary to fund future investment opportunities.”
The ATM program would allow the company to sell up to 17 million common
shares from time to time through the sales agents for a 36-month period.
The sales, if any, would be made in "at the market” offerings as defined
in Rule 415 of the Securities Act. In addition, the common shares may be
offered and sold through privately negotiated transactions. The company
intends to use the proceeds from any offering for working capital and
general company purposes including, without limitation, the acquisition
or development of multifamily properties as suitable opportunities arise
and the reduction of debt.
The company has filed a registration statement (including a prospectus)
with the SEC for the offering of common shares described in this
communication. Before you invest, you should read the prospectus in that
registration statement and other documents the company has filed with
the SEC for more complete information about the company and this
offering. You may obtain these documents for free by visiting EDGAR on
the SEC website at www.sec.gov.
Alternatively, the company or the sales agents will arrange to send you
the prospectus if you request it by contacting Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Attention: Prospectus Department, 4 World
Financial Center, New York, New York 10080 or by calling 1-866-500-5408;
J.P. Morgan Securities Inc., 4 Chase Metrotech Center, CS Level,
Brooklyn, NY 11425, Attention: Prospectus Library or by calling
1-866-430-0686, and Morgan Stanley & Co. Incorporated, Attention:
Prospectus Department, 180 Varick Street, Second Floor, New York, New
York 10014 or by emailing a request to prospectus@morganstanley.com
or by calling 1-866-718-1649.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of the
company’s common shares in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
Equity Residential is an S&P 500 company focused on the acquisition,
development and management of high quality apartment properties in top
U.S. growth markets. Equity Residential owns or has investments in 512
properties totaling 140,605 units. For more information on Equity
Residential, please visit our website at www.equityresidential.com.
Information on our website is not deemed to be a part of this press
release.
Forward-Looking Statements
In addition to historical information, this press release contains
forward-looking statements and information within the meaning of the
federal securities laws. These statements are based on current
expectations, estimates, projections and assumptions made by management.
While Equity Residential’s management believes the assumptions
underlying its forward-looking statements are reasonable, such
information is inherently subject to uncertainties and may involve
certain risks, including, without limitation, changes in general market
conditions, including the rate of job growth and cost of labor and
construction material, the level of new multifamily construction and
development, competition and local government regulation. Other risks
and uncertainties are described under the heading "Risk Factors” in our
Annual Report on Form 10-K and subsequent periodic reports filed with
the Securities and Exchange Commission (SEC) and available on our
website, www.equityresidential.com.
Many of these uncertainties and risks are difficult to predict and
beyond management’s control. Forward-looking statements are not
guarantees of future performance, results or events. Equity Residential
assumes no obligation to update or supplement forward-looking statements
that become untrue because of subsequent events.
