Associated Estates Announces Closing of Common Share Offering

Oct 01, 2010, 14:50 ET from Associated Estates Realty Corporation

CLEVELAND, Oct. 1 /PRNewswire-FirstCall/ -- Associated Estates Realty Corporation (NYSE: AEC, Nasdaq: AEC) today announced that it completed the sale of 9,200,000 common shares at a price of $13.60 per share, representing 8,000,000 of its common shares sold pursuant to its previously announced public offering and an additional 1,200,000 common shares that the underwriters elected to purchase pursuant to their over-allotment option in connection with the public offering. The net proceeds of the sale were approximately $119.6 million after deducting underwriting discounts, commissions and offering expenses. All of the shares were offered by Associated Estates and were issued under the Company's currently effective shelf registration statement filed with the Securities and Exchange Commission.

Associated Estates intends to use the net proceeds received from the offering to fund property acquisitions, to repay indebtedness and for general corporate purposes. Pending application for the foregoing purposes, Associated Estates intends to use the net proceeds to temporarily repay borrowings outstanding under its unsecured revolving credit facility.

Citi, Raymond James and Wells Fargo Securities served as joint book-running managers, and Baird, The Benchmark Company, FBR Capital Markets, Janney Montgomery Scott, Keefe, Bruyette & Woods, The Huntington Investment Company, Piper Jaffray and PNC Capital Markets LLC served as co-managers for the offering. A final prospectus supplement related to the public offering has been filed with the Securities and Exchange Commission. Copies of the final prospectus supplement may be obtained from Citi, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220; Attention: Prospectus Department; Telephone: 800-831-9146 or Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, FL 33716, Telephone: 800-248-8863.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state. The offering may be made only by means of a prospectus and related prospectus supplement forming part of the effective shelf registration statement.

Associated Estates is a real estate investment trust ("REIT") and is a member of the Russell 2000. The Company is headquartered in Richmond Heights, Ohio. Associated Estates' portfolio consists of 51 properties containing 13,234 units located in eight states.

For more information, please contact:

Media Contact:

Kimberly Kanary

(216) 797-8718

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Investor Contact:

Jeremy Goldberg

(216) 797-8715

SOURCE Associated Estates Realty Corporation



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