FOR MORE INFORMATION, CONTACT:
David H. Hoster II, President and Chief Executive Officer
N. Keith McKey, Chief Financial Officer
(601) 354-3555
Jackson, Mississippi, June 3, 2003– EastGroup Properties (NYSE-EGP)) today announced that it received binding commitments to purchase substantially all shares of the 1,320,000 shares of 7.95% Series D Cumulative Redeemable Preferred Stock that the Company is in the process of offering. The shares have a $25 liquidation value per share and will be redeemable at par at the option of the Company on or after July 2, 2008. The first dividend will be payable on October 15, 2003 and will be for less than a full quarter. If fully subscribed, the offering will result in approximately $32.3 million of net proceeds, which, along with the net proceeds from the Company’s recent Common Stock offering, will be used to redeem all of the Company’s outstanding 9.00% Series A Cumulative Redeemable Preferred Stock.
Mercury Capital Markets LLC, an affiliate of Mercury Partners LLC, a real estate merchant bank, is acting as exclusive placement agent in connection with the offering.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. A copy of the prospectus supplement relating to these securities may be obtained when available by contacting Mercury Capital Markets LLC at 100 Field Point Road, Greenwich, CT 06830, telephone number 203-769-2980.
The Company will redeem all of its 1,725,000 shares of 9.00% Series A Cumulative Redeemable Preferred Stock (NYSE: EGP PrA, CUSIP: 277 276 200). The redemption is expected to take place on or about July 7, 2003 at a redemption price of $25.00 per share plus accrued and unpaid dividends for the period from July 1, 2003 through and including the redemption date.
From the redemption date forward, distributions will cease to accrue. The Series A preferred stock will no longer be deemed to be outstanding and all rights of the holders will cease, except the right to receive the redemption price, without interest, upon presentation and surrender of the Series A Cumulative Redeemable Preferred Stock to EquiServe Trust Company, N.A., the redemption agent, during its usual business hours at the address specified in the Letter of Transmittal accompanying the Notice of Redemption.
The Notice of Redemption and related materials will be mailed to holders of record of the Series A Cumulative Redeemable Preferred Stock on or about June 5, 2003. Questions relating to the Notice of Redemption and related materials should be directed to EquiServe Trust Company, N.A., the redemption agent at 1-800-251-4215.
EastGroup Properties, Inc. is a self-administered equity real estate investment trust focused on the acquisition, ownership and development of industrial properties in major Sunbelt markets throughout the United States. EastGroup’s portfolio currently includes 18.8 million square feet with an additional 510,000 square feet of properties under development.
EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
P.O. Box 22728, Jackson, MS 39225-2728
Telephone: 601/354-3555 Fax: 601/352-1441