Getty Realty (GTY) said on Tuesday it has launched an underwritten public offering of 4 million shares of its common stock in connection with forward sale agreements.
The company said it intends to grant underwriters a 30-day option to purchase up to an additional 600,000 shares.
J.P. Morgan and Wells Fargo Securities are acting as book-running managers for the offering.
Getty Realty said it expects to enter into forward sale agreements with J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, under which the forward purchasers or their affiliates are expected to borrow and sell an aggregate of 4 million shares to the underwriters, or up to 4.6 million shares if the option is exercised in full and additional forward sale agreements are executed.
The company said it will not initially receive any proceeds from the sale of shares by the forward purchasers.
It expects to physically settle the forward sale agreements and receive proceeds, subject to adjustments, within about one year.
It plans to use net proceeds to fund property acquisitions, repay borrowings under its revolving credit facility, and for working capital and other general corporate purposes.
