CHICAGO-Grubb & Ellis Co. and its majority controlling stockholder are each selling five million shares of the company's common stock at an offering price of $9.50 per share. The company's existing common was trading on the New York Stock Exchange at $9.28 per-share at noon today.
The offering is expected to close July 6. The company says in a prepared statement it plans to use the net proceeds for working capital and other general corporate purposes, such as potential acquisitions and the hiring of additional staff.
According to Securities and Exchange Commission documents the company has filed in the past, C. Michael Kojaian and his family control 57% of the company's stock. Investment firm Warburg Pincus owns 22%. Kojaian is chairman of Grubb & Ellis.
Deutsche Bank Securities Inc. is the sole book-running manager of the offering. JPMorgan is co-lead manager and William Blair & Co. is co-manager. Grubb & Ellis has given the underwriters a 30-day to purchase up to an additional 1.5 million shares of common stock to cover over-allotments.
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