Reddit darling Macerich falls on $500 mln equity raise plans

AI Financial

01/02/2021 14:48

** Macerich Co  MAC.N  shares down 3.2% to $15.20 early Mon
as mall REIT looks to raise equity
    ** MAC files https://www.sec.gov/Archives/edgar/data/912242/000119312521023606/d116467d424b5.htm#suprom116467_4
 to sell up to $500 mln of shares from time to time through
equity distribution agreement with Deutsche Bank, Goldman, JP
Morgan and Wells Fargo
    ** Co to use net offering proceeds to repay debt and for
general corp purposes
    ** Last week, beleaguered REIT's shares jumped >80% to as
high as $25.99, swept up by Reddit-fueled trading frenzy with
videogame retailer GameStop  GME.N , one of MAC's tenants, front
and center  urn:newsml:reuters.com:*:nL4N2K432U
    ** However, MAC's stock dropped 17.4% to $15.70 on Fri, a
day after then #1 holder Ontario Teachers' Pension Plan
disclosed sale of ~$500 mln worth of shares last week, per
regulatory filing  urn:newsml:reuters.com:*:nEOLJVQkT
    ** ~56% of MAC's free float of shares were sold short as of
Jan 15, according to Refinitiv Eikon data
    ** Stock had fallen in recent years due to rising retail
vacancies and consumer shift to online shopping, and slumped
below $5 in early Apr amid the pandemic
    ** Macerich joins several other Reddit darlings, including
American Airlines  AAL.O  and AMC Entertainment  AMC.N , that
are looking to raise capital after seeing their stocks surge
 urn:newsml:reuters.com:*:nL1N2K42BE

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 646-223-5017))