FOR MORE INFORMATION, CONTACT:
David H. Hoster II, President and Chief Executive Officer
N. Keith McKey, Chief Financial Officer
(601) 354-3555
Jackson, Mississippi, July 2, 2003 – EastGroup Properties (NYSE-EGP) today announced that it closed a public offering of 1,320,000 shares of 7.95% Series D Cumulative Redeemable Preferred Stock (NYSE: EGP PrD, CUSIP: 277 276 408). 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. The offering resulted 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, acted 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 by contacting Mercury Capital Markets LLC at 100 Field Point Road, Greenwich, CT 06830, telephone number 203-769-2980.
On June 5, 2003, the Company called for redemption all 1,725,000 shares of its 9.00% Series A Cumulative Redeemable Preferred Stock (NYSE: EGP PrA, CUSIP: 277 276 200) subject to a condition that the closing of the Company's public offering of 1,320,000 shares of Series D Cumulative Redeemable Preferred Stock shall have occurred. With the closing of the public offering of 1,320,000 shares of Series D Preferred Stock and the satisfaction of the condition, the redemption will take place as scheduled on July 7, 2003 at a redemption price of $25.00 per share of Series A Preferred Stock, plus accrued and unpaid dividends for the period from April 15, 2003 through and including the redemption date of $0.51875 per share, for an aggregate redemption price of $25.51875 per share of Series A Preferred Stock, without interest.
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 were mailed to holders of record of the Series A Cumulative Redeemable Preferred Stock on 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 18.9 million square feet with an additional 478,000 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