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TIER REIT Lists on NYSE, Launches $50M Dutch Tender, Shares Finish Down

Dallas-based TIER REIT Inc., (NYSE: TIER) a publicly registered non-traded real estate investment trust formerly known as Behringer Harvard REIT I Inc., has listed on the New York Stock Exchange with an opening price of $19.50. By the end of trading, the price had fallen to $18.24.

The formerly non-traded REIT originally sold its stock to investors at $10 per share. In June, the company effected a 6 to 1 reverse stock split, meaning the share price would need to equal $60 in order to return all investor principal (not including distributions paid).

In connection with the listing of its shares of common stock, members of TIER REIT’s management team rang the NYSE Opening Bell.

TIER REIT’s investment strategy is to acquire, develop, and operate a portfolio of office properties in select US markets that consistently lead the nation in population and office-using employment growth. And according to Scott Fordham, chief executive officer and president of TIER REIT, “This is a major milestone.”

In a prepared statement, Fordham thanked the many team members and stockholders that have supported the company in reaching this goal. “As a publicly listed company, we are better positioned to execute on our growth strategy, and we look forward to utilizing this platform to deliver greater total return potential to our stockholders.”

In conjunction with the listing on the NYSE, TIER REIT has also commenced a modified “Dutch auction” tender offer to purchase up to $50 million of its shares of common stock. In accordance with the terms of the tender offer, the company will select the lowest price, not greater than $21.00 nor less than $19.00 per share. TIER REIT expects to fund the tender offer with available cash and/or borrowings available under its existing credit facility.

The tender offer will expire at 11:59 p.m. EDT on August 19, 2015, unless it is extended or withdrawn. Stockholders may tender all or a portion of their shares of common stock, or may choose not to tender any, by following the procedures, including choosing the price at which they wish to tender their shares of common stock.

In connection with the listing and tender offer, TIER REIT engaged J.P. Morgan Securities LLC as its lead capital markets advisor, Wells Fargo Securities LLC as a capital markets advisor, Green Street Advisors, Advisory and Consulting Group as a strategic advisor, and Goodwin Procter LLP as its legal counsel.

To read about other TIER REIT news covered by THE DI Wire, including the expanded credit facility and new chairman of the board, click here.

TIER REIT Inc. is a self-managed, Dallas, Texas-based real estate investment trust that acquires, develops and operates a portfolio of office properties in select U.S. markets.