Macerich Completes Issuance of Common Stock, Raises Funds for Debt Repayment

On November 27, 2024, The Macerich Company (NYSE:MAC) successfully concluded the issuance and sale of 23,000,000 shares of its common stock, with an underwriting agreement dated November 25, 2024, involving Goldman Sachs & Co. LLC as the representative of the underwriters. This sale of shares, each priced at $19.75, was supplemented by the exercise in full of the underwriters’ 30-day option to acquire an additional 3,000,000 shares.

The net proceeds from this offering, including those from the underwriters’ additional share purchase, will be contributed to The Macerich Partnership, L.P. The intention is to exchange these funds for Operating Partnership securities that exhibit economic interests akin to the common stock. The Operating Partnership plans to utilize these proceeds, along with $39.0 million from available cash reserves, to repay a $478.0 million mortgage loan secured by Macerich’s Washington Square property. While pending this debt repayment, the Operating Partnership may temporarily invest the proceeds in short-term, interest-bearing deposit accounts.

Additionally, customary representations, warranties, and covenants were included in the Underwriting Agreement by The Macerich Company. Furthermore, the agreement outlines standard indemnification by the Company against losses or damages linked to the share sale.

The above-mentioned details of the Underwriting Agreement are not exhaustive and are subject to reference to the complete agreement filed as Exhibit 1.1 attached to the SEC Form 8-K filing.

Moreover, a legal opinion regarding the shares’ legality, provided by the Company’s counsel, Venable LLP, can be found in Exhibit 5.1, along with the consent of Venable LLP in Exhibit 23.1 of the filing.

By fulfilling the regulatory obligations, Macerich has confirmed the successful completion of this financial transaction.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Macerich’s 8K filing here.

Macerich Company Profile

Macerich is a fully integrated, self-managed and self-administered real estate investment trust (REIT). As a leading owner, operator and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich’s portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, DC corridor.