SL Green greenshoe exercised, lifts preferred sale to $230 million

By Tali David

Minneapolis, Aug. 10 - SL Green Realty Corp. said the over-allotment option on its offering of 6.5% series I cumulative redeemable preferred stock was exercised in full, increasing the offering by 1.2 million shares, or $30 million, according to an 8-K filed with the Securities and Exchange Commission.

The company now expects to sell 9.2 million shares, or $230 million, at a liquidation preference of $25 per share, after pricing an upsized $200 million offering on Aug. 7 at par with a dividend of 6.5%.

Wells Fargo Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and UBS Securities LLC are the joint bookrunners.

Proceeds will be contributed to the company's operating partnership in exchange for an equal number of series I cumulative redeemable preferred units. The operating partnership will use all or a portion of the proceeds to redeem all or some of its series C preferred stock. Any remaining proceeds may be used to repay outstanding debt and for general corporate purposes.

SL Green is a New York-based real estate investment trust specializing in Manhattan office properties.

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