Ramco-Gershenson Properties Trust begins sale of 6 million shares; proceeds to pay down debt

Ramco-Gershenson starts sale of 6 million shares

FARMINGTON HILLS, Mich. — Ramco-Gershenson Properties Trust on Wednesday said it began selling 6 million newly issued common shares as part of a plan to pay down its debt.

The retail-focused real estate investment trust plans to grant the underwriters a 30-day option to purchase up to an additional 900,000 shares to cover over-allotments, if any.

Ramco-Gershenson plans to use the proceeds of the offering to prepay the $33 million principal payment of its secured term loan facility, to pay off two mortgages in aggregate of $15.9 million and to reduce outstanding borrowings under its secured revolving credit facility.

The joint book-running managers for the offering are Bank of America Merrill Lynch and JPMorgan Securities.

Shares of Ramco-Gershenson closed Wednesday trading up 50 cents, or 4.2 percent, at $12.49. Shares fell after the offering was announced, dropping 82 cents, or 6.6 percent, to $11.67 in aftermarket electronic trading.