SANTA MONICA, Calif., Jan. 13 /PRNewswire-FirstCall/ -- The Macerich Company (NYSE: MAC) today announced that it has priced a public offering of 9,523,810 newly issued shares of its common stock at an initial price to the public of $69.50 per share. In connection with the offering, the company also has granted the underwriters a 30-day option to purchase up to an additional 1,428,571 shares of common stock solely to cover over-allotments, if any. The closing of the offering is expected to occur on January 19, 2006, subject to the satisfaction of customary closing conditions.
The net proceeds of the offering (assuming no exercise of the underwriters' option to purchase additional shares) are expected to be approximately $649 million after deducting underwriting discounts, commissions and offering expenses. The company intends to use the net proceeds of the offering to repay a portion of the indebtedness incurred in connection with the recent acquisition of Wilmorite Properties, Inc. and Wilmorite Holdings, L.P. and to pay a portion of the purchase price for Valley River Center, a 916,000 square foot super-regional mall in Eugene, Oregon.
Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc. acted as joint book-running managers and underwriters for the offering.
An automatic shelf registration statement relating to the common stock was previously filed with the Securities and Exchange Commission and became effective upon such filing. This press release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of these shares of common stock in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering is being made only by means of a prospectus supplement and related prospectus, copies of which may be obtained from: Deutsche Bank Securities Inc., 60 Wall Street, 4th Floor, New York, New York 10005.
Note: This press release contains forward-looking statements regarding our intended use of the net proceeds from the sale of the shares that are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Stockholders are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to vary materially from those anticipated, expected or projected. Such factors include, among others, general industry, economic and business conditions, which will, among other things, affect demand for retail space or retail goods, availability and creditworthiness of current and prospective tenants, anchor or tenant bankruptcies, closures, mergers or consolidations, lease rates and terms, interest rate fluctuations, availability and cost of financing and operating expenses; adverse changes in the real estate markets including, among other things, competition from other companies, retail formats and technology, risks of real estate development and redevelopment, acquisitions and dispositions; governmental actions and initiatives (including legislative and regulatory changes); environmental and safety requirements; and terrorist activities which could adversely affect all of the above factors. The reader is directed to the Company's various filings with the Securities and Exchange Commission, for a discussion of such risks and uncertainties.
SOURCE The Macerich Company 01/13/2006 CONTACT: Arthur Coppola, President and Chief Executive Officer, or Thomas O'Hern, Executive Vice President and Chief Financial Officer, +1-310- 394-6000, or Edward C. Coppola, Senior Executive Vice President and Chief Investment Officer, +1-972-385-9858, all of The Macerich Company /Web site: http://www.macerich.com