Retail Properties Of America
The real estate investment trust formerly known as Inland Western REIT, recently renamed Retail Properties of America (RPA), has filed several recent amendments to its S-11. The March 23, 2012, amendment had some points worth noting. RPA's filing listed an expected public offering share price of $10 to $12. This price is based on RPA's 2.5 to 1 reverse stock split. To an original investor, the estimated $10 to $12 listing share price is the equivalent of a $4.00 to $4.80 stock price. Stated another way, the estimated RPA list price is 52% to 60% lower than an investor's original share price. There is no assurance the estimated listing price will be realized or that the stock, once listed, will stay above the estimated price.RPA is seeking to raise $320 million in new equity along with the listing, assuming a mid-point listing price of $11 per share. The underwriters presented on the front page of the S-11 for the listing and stock offering are J.P. Morgan, Citigroup, Deutsche Bank Securities, KeyBanc Capital Markets, Scotiabank, Wells Fargo Securities and PNC Capital Markets. Page 44 of the S-11, and this is my favorite part of the S-11, states how RPA plans to utilize the offering proceeds.