AUSTIN, TX-American Campus Communities Inc. has created anat-the-market equity program, which allows the student housing REITto sell $150 million in common stock from time to time.

The at-the-market equity program, known as an ATM program, isoffered through BofA Merrill Lynch, J.P. Morgan Securities Inc. andKeyBanc Capital Markets Inc. The ATM program allows ACC to go outand raise smaller chucks of equity whenever it likes the price atwhich its stock is trading, says Daniel Perry, the REIT’s seniorvice president of capital markets.

“This gives us flexibility to pursue external growth in a mannerthat keeps leverage low and minimizes our cost of capital,” Perrytells GlobeSt. “If we were to do a regular equity offering, wewould have dilution from the money sitting on our balance sheet andthe shares outstanding way before we need the money. With the ATMprogram, we can raise money as we deploy it.”

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.