TEJON RANCH, Calif.--(BUSINESS WIRE)--Oct. 30, 2017--
Tejon Ranch Co. (NYSE: TRC) announced today that, based on the
preliminary results of its just concluded rights offering, it
anticipates raising $90 million, the maximum gross proceeds possible.
The rights offering concluded on October 27, 2017 and was extremely well
received and oversubscribed with demand for shares more than doubling
the total rights shares available through the offering. Tejon previously
offered transferable rights to purchase 4,173,067 shares of its common
stock at a purchase price of $18.00 per share to stockholders of record
as of October 4, 2017. In addition, Tejon has the option to issue an
additional 833,333 shares to honor over-subscription requests. The $90
million of capital that is anticipated being raised will include the
release of 826,933 over-allotment shares and, as a result of the
offering, the Company will issue 5,000,000 new shares of common stock. A
total of 25,873,235 shares of common stock will be outstanding once all
new shares have been delivered.
“The Company and its Board of Directors are appreciative of the
continued support of our current and new shareholders,” said Gregory S.
Bielli, President and CEO. “Investing the maximum amount possible and,
in fact, subscribing for more than twice the shares available, is
evidence of their confidence in Tejon Ranch Co. These new capital
proceeds will help us maintain our strong balance sheet as we move
forward with the completion of our entitlement and land development
activities.”
The net proceeds of the offering will be used to provide additional
working capital for general corporate purposes, including to fund
general infrastructure costs and the development of buildings at Tejon
Ranch Commerce Center, to continue forward with entitlement and
permitting programs for the Centennial at Tejon Ranch and Grapevine at
Tejon Ranch communities and costs related to the preparation of the
development of Mountain Village at Tejon Ranch.
About Tejon Ranch Co.
Tejon Ranch Co. is a diversified real estate development and
agribusiness company, whose principal asset is its 270,000-acre land
holding located approximately 60 miles north of Los Angeles and 30 miles
south of Bakersfield.
More information about Tejon Ranch Co. can be found online at http://www.tejonranch.com.
Forward-Looking Statements
This communication contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
include, without limitation, our statements contained above regarding
the proposed rights offering, and other statements that are not
historical facts. These statements involve risks and uncertainties that
could cause actual results and events to differ materially, including
the possibility that the rights offering may be cancelled before it
closes. For a discussion of further risks and uncertainties related to
Tejon’s business, please refer to our public company reports and the
Risk Factors enumerated therein, including our Annual Report on Form
10-K for the year ended December 31, 2016 and subsequent reports, filed
with the SEC. Tejon undertakes no duty to update any forward-looking
statement to reflect any change in its expectations or any change in
events, conditions or circumstances on which any such statements are
based.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171030006002/en/
Source: Tejon Ranch Company
Tejon Ranch Co.
Allen Lyda, Executive Vice President & Chief
Financial Officer
(661) 248-3000
