- First Spring Capital Trust is an internally managed REIT.
- First Spring Capital is set to debut on NYSE Thursday under the ticker symbol FSPR.
- The New Jersey-based company plans to raise US$252 million from the offering.
Four Springs Capital Trust (FSPR) is set to debut on New York Stock Exchange (NYSE) Thursday under the ticker symbol FSPR.
The Lake Como, New Jersey-based company has set the IPO price range at US$13.00 to US$15.00. It will raise around US$252 million in the mid-price range.
The company is offering 18,000,000 common shares in the IPO. An additional 2,700,000 shares are reserved for underwriters at the offering price in case of overallotment.
Four Springs Capital hopes to offer a 3.5%-yield at the midpoint.
After the offer, it will have 41,165,143 outstanding common shares; and if the underwriters exercise their purchase option in full, it will have 43,865,143 common shares.
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The company plans to use the proceeds, estimated at US$231.4 million to US$266.7 million, to consummate pending acquisitions and repayment of M&T credit facility and Mezzanine loan outstanding. The balance will be used for general corporate purposes.
Its joint book-running managers are Morgan Stanley, Goldman Sachs & Co. LLC, and Wells Fargo Securities. The book-runners are Mizuho Securities, Scotiabank, Wolfe, Nomura Alliance, and Berenberg. R. Seelaus & Co., LLC is the co-manager for the offering.
First Spring Capital is an internally managed REIT. It acquires, owns, and manages a portfolio of single-tenant properties in the US for medical, industrial, retail, and office purposes.
The company has ownership rights in 156 properties, with a 99.8% occupancy rate, in 32 states as of December 15, 2021. These were leased to out 68 tenants from 37 different industries.
It had 21 employees as of December 15, 2021.
For the nine months ended September 30, 2021, its revenue was US$38.97 million compared to US$25.96 million in the corresponding period a year ago.
It booked a net loss of US$21.0 million or US$US$3.24 per share diluted compared to a net loss of US$15.58 million or US$8.37 per share diluted in the same period of 2020.
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After a record year for IPOs in 2021, the market has cooled down lately. Analysts expect the IPO market to heat up in the second half of 2022 when the rate scenario and the Omicron crisis would be clearer. Investors, however, should exercise due diligence before investing in stocks.