Equity LifeStyle Properties, Inc. (NYSE: ELS) (the “Company” or “ELS”) announced on Monday that it has commenced an underwritten public offering of 4,000,000 shares of common stock and announced commitments for mortgages on four manufactured home properties. ELS, which is a fully integrated owner and operator of lifestyle-oriented properties, intends to use the net proceeds from this offering to repay secured long-term debt and for general corporate uses. Merrill Lynch & Co. and Wachovia Securities are acting as joint book-running managers of the public offering.
ELS, through a separate 8-K filing, announced that it has entered into commitments with Fannie Mae related to mortgages on four manufactured home properties. The Company has locked an annual interest rate of 6.53% on $10.0 million of debt, 6.925% on approximately $12.0 million of debt and 7.135% on approximately $49.7 million of debt. The loans will have a term of ten years, with principal amortization over 30 years. The net proceeds from the loans will be used to repay secured long-term debt and for general corporate purposes and the closing of these loans is subject to the execution of definitive loan documentation and the fulfillment of certain conditions. While the company hopes that it will be able to successfully complete the transactions, it can provide no assurances. Additionally, the company is hoping to enter into commitments with Fannie Mae to borrow an additional $21.6 million secured by mortgages on two additional manufactured home properties.