BioMed Realty Trust, Inc. (BMR: Quote) announced that it has entered into a definitive agreement to merge with Wexford Science & Technology, LLC, a subsidiary of Wexford Equities, LLC.
The company noted that the aggregate consideration for Wexford Science & Technology is approximately $640 million, excluding transaction costs and subject to adjustment based on working capital levels and construction and development costs incurred prior to closing. Wexford Science & Technology will operate as a wholly owned subsidiary of BioMed Realty.
As a result of the transaction, the company anticipates general and administrative expense to increase to a total of about $12 million to $12.5 million per quarter.
Separately, BioMed Reality announced that it has commenced a public offering of 15 million shares of its common stock pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission.
BioMed Realty said it plans to use the net proceeds of the offering to fund a portion of the purchase price for the recently announced, pending acquisition of Wexford Science & Technology, LLC, to repay a portion of the outstanding indebtedness under its unsecured line of credit and for other general corporate and working capital purposes.
The acquisition of Wexford Science & Technology is subject to the receipt of lender, ground lessor and other third-party consents, waivers of rights of first offer and customary closing conditions, and there can be no assurances that the acquisition will close on the terms described, or at all. All of the shares will be offered by the company.
The company stated that it also expects to grant the underwriters a 30-day option to purchase up to an additional 2.25 million shares of its common stock.
| || |
| To receive FREE breaking news email alerts for BioMed Realty Trust and others in your portfolio|
by RTT Staff Writer
For comments and feedback: email@example.com