Business Context and Reporting Period
This Form 8-K filing by Broadstone Net Lease, Inc. (Broadstone) reports on events occurring on January 31, 2018. The filing details the completion of the most recent monthly closing of the Company's ongoing private offering of common stock.
Key Financial Metrics and Capital Activity
- Equity Raised: $15,000,000 in aggregate sale proceeds from the January 31, 2018 closing.
- Shares Issued (Private Offering): 185,185.196 shares at a purchase price of $81.00 per share.
- Shares Issued (DRIP): 49,040.567 shares issued on January 15, 2018, generating $3,892,966.79 in proceeds at $79.38 per share (a 2% discount to the Determined Share Value).
- Total Outstanding Common Stock: 19,143,482.689 shares as of January 31, 2018.
- Operating Company Units: 20,694,940.619 units outstanding, with Broadstone owning approximately 92.50% and noncontrolling interests holding approximately 7.50%.
- Investment Queue: Approximately $3,568,213 remained in the queue for subsequent equity closings at $81.00 per share following the January closing.
Material Changes and Use of Proceeds
The filing indicates that the $15,000,000 raised in the January closing equaled the Company's existing monthly cap on new and additional investments for January 2018. The Company intends to use substantially all net proceeds from this and future closings, supplemented by additional borrowings, to invest in additional net leased properties and for general corporate purposes. The offering was conducted under the exemption from registration provided by Rule 506(c) under Regulation D.
Outlook and Management Commentary
Management notes that the Company continues to close sales of additional shares of common stock monthly. The filing confirms the ongoing nature of the private offering and the existence of a queue for future investments. No specific forward-looking financial guidance or risk factors beyond standard regulatory disclosures were detailed in this specific text segment.
Key Facts for Investor Verification
- Verify the utilization of the $15,000,000 raised against the Company's stated monthly investment cap.
- Confirm the status of the $3,568,213 investment queue and the timeline for subsequent closings.
- Monitor the ratio of noncontrolling interests (7.50%) in the Operating Company and potential conversion impacts.
- Review the Company's borrowing activity intended to supplement equity proceeds for property acquisitions.