Real estate investment trust Macerich (NYSE: MAC) priced an upsized public offering of 19.2 million shares at $21.00 each, seeking to raise approximately $403.2 million to pay down debt.
"The Company intends to use the net proceeds of this offering to repay borrowings under the Company’s revolving credit facility, which were used primarily to fund the acquisition of Annapolis Mall," Macerich said in a statement.
The offering was increased from its original size of 16 million shares, with underwriters, led by Goldman Sachs & Co. LLC, holding a 30-day option to purchase up to an additional 2.88 million shares. The $21.00 per share price represents a 3% discount to the stock's closing price of $21.64 on May 11. The deal is expected to close on May 13, 2026.
The offering will dilute existing shareholdings but strengthens the company's balance sheet by converting revolver debt into permanent equity. This move follows a pattern for Macerich, which has repeatedly tapped equity markets to refinance debt, including raising $395 million in November 2024 to repay a mortgage.
The capital raise is aimed directly at paying down borrowings used for the recent $272 million acquisition of Annapolis Mall. Any remaining funds are allocated for general corporate purposes, which could include further property acquisitions or strategic investments in the newly acquired mall.
Macerich's stock was down 1.05% in the session prior to the announcement. The company's strategy of using equity to manage its debt has been noted by analysts, with Keybanc and Truist Securities recently issuing "Overweight" and "Buy" ratings, respectively. The median analyst price target for Macerich sits at $21.00, identical to the offering price.
The transaction is being managed by a syndicate of banks including Deutsche Bank Securities, J.P. Morgan, and Morgan Stanley as joint bookrunning managers.
This offering signals the company's continued focus on managing its leverage and funding growth through equity rather than relying solely on debt markets. Investors will watch for the impact on the company's funds from operations (FFO) per share and the performance of the Annapolis Mall asset following this capital injection. The next major catalyst for the company will be its second-quarter earnings report, expected in late July 2026.
This article is for informational purposes only and does not constitute investment advice.
