BB&T Capital Markets Serves as an Underwriter on Select Income REIT’s Follow-On Equity Offering

Transaction Summary

BB&T Capital Markets’ Real Estate Group completed a transaction for a real estate investment trust in the second quarter of 2014, helping to raise $261,000,000 for our client. The Company intends to use the proceeds from the offering to repay amounts outstanding under its revolving credit facility and for general business purposes, including possible future acquisitions of properties.

About the Companies

Select Income REIT owns 48 properties, including 11 net leased lands in Hawaii and 37 offices and industrial properties located through the mainland United States. The Company’s lands and properties contain approximately 26.1 million rentable square feet and are located in 20 states.

Real Estate

BB&T Capital Markets offers real estate companies an integrated platform of equity and debt underwriting, M&A advisory, sales and trading and corporate banking solutions.

About BB&T Capital Markets

BB&T Capital Markets offers an integrated platform of equity and debt underwriting, M&A advisory, corporate banking, equity research and sales and trading. Headquartered in Richmond, Va., with offices throughout the U.S., we have specific expertise within eleven distinct industry verticals including Aerospace, Defense & Government Services; Automotive Aftermarket; Commercial & Industrial; Financial Services; Food & Agribusiness; Logistics & Transportation Services; Healthcare; Education; Energy; Real Estate; and Retail & Consumer. Our commitment to industry expertise, combined with our resources as one of the nation's strongest financial institutions, strategically positions BB&T Capital Markets to build lasting relationships and contribute measurably to the long-term success of our clients.

  • Health Care REIT, Inc. (NYSE: HCN)

    BB&T Capital Markets’ Real Estate Group completed a transaction for a real estate investment trust in the third quarter of 2014, helping to raise $988,125,000 for our client. The Company intends to use net proceeds from this offering to repay advances under its primary unsecured credit facility and for general corporate purposes, including investing in health care and senior housing properties.

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  • Government Properties Income Trust

    On August 13, 2014, BB&T Capital Markets served as a co-manager for a $350 million offering of 3.75% Senior Notes by Government Properties Income Trust. The notes mature in 2019. Proceeds from the transaction are being used to pay down amounts remaining outstanding on a term loan and to reduce amounts outstanding under the company’s revolving credit facility.

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  • HCP, Inc.

    On August 7, 2014, HCP, Inc. invited BB&T Capital Markets to serve as a co-manager for an $800 million offering of 3.875% Senior Notes due in 2024. Proceeds from the offering are to be used to repay amounts outstanding under HCP revolving line of credit as well as for general corporate purposes, which may include a cash contribution to HCP’s joint venture with Brookdale Senior Living, Inc.

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  • Orange Lake Country Club, Inc.

    On August 6, 2014, BB&T Capital Markets served as a co-lead manager for a $148,757,000 securitization of timeshare resort loans for Orange Lake Country Club, Inc.

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  • Ramco-Gershenson Properties Trust (NYSE: RPT)

    BB&T Capital Markets’ Real Estate Group completed a transaction for a real estate investment trust in the third quarter of 2014, helping to raise $113,505,000 for our client. The Company intends to use net proceeds from this offering to repay debt and other general corporate purposes, including financing the planned acquisition of the Buttermilk Towne Center in Crescent Springs, Kentucky. Total gross proceeds includes the full exercise of the underwriters’ over-allotment option, through which they purchased an additional 900,000 shares.

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  • Health Care REIT, Inc. (NYSE: HCN)

    BB&T Capital Markets’ Real Estate Group completed a transaction for a real estate investment trust in the second quarter of 2014, helping to raise $1,003,835,000 for our client. The Company intends to use net proceeds from this offering to repay advances under its primary unsecured credit facility and for general corporate purposes, including investing in health care and senior housing properties. Total gross proceeds includes the full exercise of the underwriters’ over-allotment option, through which they purchased an additional 2,100,000 shares.

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  • Highwoods Realty, L.P.

    On May 19, 2014, BB&T Capital Markets served as a bookrunning lead manager for a $300 million offering of senior notes by Highwoods Realty L.P., the operating partnership of Highwoods Properties, Inc. The senior unsecured notes mature on June 15, 2021 and were priced with a coupon of 3.2 percent. Net proceeds from the sale will be used to reduce amounts outstanding under Highwoods’ $475 million revolving credit facility and for general corporate purposes. The transaction represents the third bond offering since 2007 to which Highwoods has invited BB&T Capital Markets, and the first bookrunning lead mandate.

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  • RLJ Lodging Trust (NYSE: RLJ)

    BB&T Capital Markets’ Real Estate Group completed a transaction for a real estate investment trust in the second quarter of 2014, helping to raise $243,340,000 for our client. The Company intends to use the net proceeds from the offering to fund potential acquisitions and for general corporate purposes, and may use net proceeds to repay amounts outstanding from time to time under its unsecured revolving credit facility. Total gross proceeds includes the full exercise of the underwriters’ over-allotment option, through which they purchased an additional 1,200,000 shares.

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  • Select Income REIT (NYSE: SIR)

    BB&T Capital Markets’ Real Estate Group completed a transaction for a real estate investment trust in the second quarter of 2014, helping to raise $261,000,000 for our client. The Company intends to use the proceeds from the offering to repay amounts outstanding under its revolving credit facility and for general business purposes, including possible future acquisitions of properties.

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  • City Office REIT, Inc. (NYSE: CIO)

    BB&T Capital Markets’ Real Estate Group completed a transaction for a real estate investment trust company in the second quarter of 2014, helping to raise $72,500,000 for our client. The Company intends to use the net proceeds from this offering for the acquisition of interests in the Company’s initial properties, the repayment of indebtedness, and general corporate purposes.

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  • Bluerock Residential Growth REIT

    BB&T Capital Markets' Real Estate Group completed a transaction for a real estate company in the first quarter of 2014, helping to raise $50,000,000 for our client. Bluerock Residential Growth REIT is a Maryland corporation that acquires institutional-quality apartment properties in demographically attractive growth markets throughout the United States.

  • Realty Income

    BB&T Capital Markets' Real Estate Group completed a transaction for a real estate company in the first quarter of 2014, helping to raise $551,448,000 for our client. The Company focuses on acquiring single-tenant retail locations, leased to regional and national chains, and under long-term net lease agreements.

  • Healthcare Realty Trust, Inc.

    On February 27, 2014, Healthcare Realty Trust, Inc. closed a $200 million senior unsecured term loan facility that matures in five years. BB&T Capital Markets served as Co-Documentation Agent. The company used the loan proceeds to repay borrowing on its unsecured revolving credit facility. Teh loan bears interest at a rate equal to LIBOR plus a margin ranging from 1.00% to 1.95%, currently 1.45% based upon the company's unsecured debt ratings.

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  • LaSalle Hotel Properties

    On January 8, 2014, BB&T Capital Markets Corporate Banking served as Co-Syndication Agent on teh refinancing of LaSalle Hotel Properties' $750 million unsecured revolving credit facility. BB&T Capital Markets was allocated $20 million in the transaction.

  • Hospitality Properties Trust

    Hospitality Properties Trust (the "Company") (NYSE: HPT) has completed a follow-on offering of 8,500,000 shares of common stock at a public offering price of $28 per share, raising approximately $238,000,000 in gross proceeds. Additionally, the underwriters have exercised, in full, their option to purchase an additional 1,275,000 common shares, increasing the gross proceeds to $273,700,000. The Company intends to use the net proceeds of this offering to repay amounts outstanding under their revolving credit facility and for general business purposes.

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  • Realty Income

    Realty Income Corporation (the “Company”) (NYSE: O) has completed a follow-on offering of 8,500,000 shares of common stock at a public offering price of $40.63 per share, raising approximately $345,355,000 in gross proceeds. Additionally, the underwriters have exercised in full the option to purchase an additional 1,275,000 common shares increasing the total gross proceeds raised to $397,158,250. The Company intends to use the net proceeds of this offering to repay a portion of the borrowings under its credit facility, which were primarily used to fund real estate acquisitions. Any other proceeds will be used for general corporate purposes and working capital.

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  • Weingarten Realty Investors

    On October 3, 2013, BB&T Capital Markets served as a co-manager for a $250 million offering of 4.45% senior notes due 2024 by Weingarten Realty Investors. The proceeds raised by the offering will be used to repay all remaining amounts outstanding under Weingarten’s $500 million credit facility. The rest of the proceeds will be used for general corporate purposes. This is the second debt offering to which BB&T Capital Markets has been invited by Weingarten since mid-2012.

  • Ventas Realty, L.P.

    On September 23, 2013, BB&T Capital Markets served as a co-manager for a $300 million offering of 5.7% senior notes due 2043 by Ventas Realty, L.P. Proceeds from the transaction are expected to be used for repayment of outstanding debt and for additional acquisitions. The offering represents the second such business with Ventas garnered by BB&T Capital Markets.

  • Bluegreen Corporation

    On September 18, 2013, BB&T Capital Markets served as a co-lead manager, bookrunner and structuring agent for a $110,625,000 offering of asset-backed notes issued by BXG Receivables Note Trust 2013-A. The notes are backed by timeshare loans originated by Bluegreen Corporation. The offering consisted of two tranches, an $89 million Class A tranche bearing a coupon of 3.01% and a $21.5 million Class B tranche, with a coupon of 4.00%. The stated maturity of both tranches is December 4, 2028; however, the average life of each tranche is 3.3 years.

  • Liberty Property, L.P.

    On September 24, 2013, BB&T Capital Markets was awarded a role as a co-manager by Liberty Property, L.P. for Liberty’s $400 million offering of 4.4% senior notes due 2024. Proceeds from the offering are being used in partial consideration for Liberty’s acquisition of the Cabot Industrial Value Fund III, which will bring 177 industrial property assets totaling approximately 23 million square feet into Liberty’s portfolio. The transaction is BB&T’s third with Liberty since the middle of 2012.

  • Physicians Realty Trust

    Physicians Realty Trust (the "Company") (NYSE: DOC) has completed its initial public offering of 10,434,782 shares of common stock at a public offering price of $11.50 per share, raising approximately $119,999,993 in gross proceeds. Additionally, the Company has granted the underwriters a 30-day option to purchase up to an additional 1,565,216 common shares, increasing the total gross proceeds raised to $137,999,977. The Company intends to use the net proceeds of this offering for the acquisition of identified properties, to pay down existing debt, and for general corporate purposes.

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