Apartment owner UDR Inc. has priced a public offering of 19 million shares at $25.70, aiming to raise as much as $538.8 million.
The company said Wednesday that it expects to use the proceeds from the stock offering to pay back about $364 million of its 3.3 percent secured debt due this year through 2014. It also intends to redeem its 6.75 percent Series G preferred stock for $81.6 million, pay down some other debt, and use the rest for general corporate purposes.
UDR anticipates net proceeds from the offering to be about $468.5 million, after accounting for related expenses.
The company has authorized underwriters to exercise a 30-day option to buy up to an additional 2.85 million shares. If that option is exercised entirely, it would drive UDR's proceeds from the offering to $538.8 million, the company said.
The offering is expected to close on Monday.
UDR shares ended regular trading down 76 cents, or 2.9 percent, at $25.85 on Wednesday. The stock slipped another 4 cents in extended trading to $25.81.