Gramercy Property Trust Announces Private Offering of $100 Million of Exchangeable Senior Notes Due 2019

Business Wire

NEW YORK--(BUSINESS WIRE)--

Gramercy Property Trust Inc. (GPT) (the “Company”) announced today that GPT Property Trust LP (the “Operating Partnership”), the wholly-owned subsidiary through which the Company conducts its operations, has commenced a private offering of $100 million aggregate principal amount of the Operating Partnership’s Exchangeable Senior Notes due 2019, which will be offered and sold only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).

The notes will be senior unsecured obligations of the Operating Partnership and will be guaranteed by the Company on a senior unsecured basis. The interest rate, exchange rate and other terms of the notes will be determined by negotiations among the Company and the initial purchasers of the notes. The Operating Partnership expects to grant the initial purchasers a 30-day option to purchase up to an additional $15 million aggregate principal amount of the notes to cover over-allotments, if any.

The Operating Partnership expects to use the net proceeds from the offering to reduce amounts outstanding under its senior secured revolving credit facility and for general corporate purposes, including acquisitions of target assets consistent with its investment strategies, and for working capital purposes.

The notes and any shares of the Company’s common stock that may be issued upon exchange of the notes have not been registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States, except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws.

This release does not constitute an offer to sell or a solicitation of an offer to buy any of the notes or shares of the Company’s common stock, nor shall there be any sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification thereof under the securities laws of any such jurisdiction. Any offers of the securities will be made only by means of a private offering memorandum.

About Gramercy Property Trust

Gramercy Property Trust Inc. is a fully-integrated, self-managed commercial real estate investment company focused on acquiring and managing income-producing industrial and office properties net leased to high quality tenants in major markets throughout the United States. The Company also operates an asset management business that manages for third-parties, including our joint venture partners, commercial real estate assets.

(GPT-IN)

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Company's present expectations, but these statements are not guaranteed to occur. For example, the fact that the offering described above has launched may imply that the offering will price and close, but both pricing and closing are subject to conditions customary in transactions of this type and may be delayed or may not occur at all. In addition, the fact that the Operating Partnership expects to grant the initial purchasers an over-allotment option may imply that this option will be exercised. However, the initial purchasers will not be under any obligation to exercise any such option, or any portion of it, and they may not do so. Investors should not place undue reliance upon forward-looking statements.

Contact:
Gramercy Property Trust Inc.
Jon W. Clark, 212-297-1000
Chief Financial Officer
or
Emily Pai, 212-297-1000
Investor Relations

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