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Home>Tejon Ranch Company Announces Commencement of Rights Offering to Stockholders

Tejon Ranch Company Announces Commencement of Rights Offering to Stockholders

Tejon Ranch Company Announces Commencement of Rights Offering to Stockholders

10/05/2017

Tejon Ranch Company Announces Commencement of Rights Offering to Stockholders

Tejon Ranch Co. (NYSE:TRC) (“Tejon”) announced today that it has commenced the previously announced rights offering to raise gross proceeds of up to approximately $75 million. Under the terms of the rights offering, Tejon has distributed, at no charge, to the holders of its common stock as of 5:00 p.m., New York time, on October 4, 2017, one transferable subscription right for each share of Tejon common stock then owned. Each subscription right entitles the holder to purchase 0.20 shares of common stock using a purchase price of $18.00 per whole share.

The rights offering also includes an over-subscription privilege, which entitles a stockholder who exercises all of its basic subscription privilege in full the right to purchase additional shares of common stock that remain unsubscribed at the expiration of the rights offering, subject to the availability and pro rata allocation of shares among persons exercising this over-subscription right. If there are not enough unsubscribed shares to honor all requests under the over-subscription privilege, Tejon may, at its discretion, elect to issue up to an additional 833,333 of over-allotment shares to honor requests under the over-subscription privilege. If the over-allotment shares are issued maximum gross proceeds in the offering would be approximately $90 million.

The subscription period for the rights offering is expected to expire at 5:00 p.m., New York time, on October 27, 2017. The shares issued in connection with the rights offering are listed on the New York Stock Exchange, and the rights are expected to trade on the New York Stock Exchange until the day before the expiration of the subscription period.

The net proceeds of the offering will be used to provide additional working capital for general corporate purposes, including to fund general infrastructure costs and the development of buildings at Tejon Ranch Commerce Center, to continue forward with entitlement and permitting programs for the Centennial at Tejon Ranch and Grapevine at Tejon Ranch communities and costs related to the preparation of the development of Mountain Village at Tejon Ranch.

Stockholders who hold their shares directly will receive a prospectus supplement, together with a letter from Tejon and other materials describing the rights offering. Those wishing to exercise their rights should review all materials, properly complete and execute the subscription rights certificate and deliver it and payment in full to the subscription agent, Computershare:

 
If Delivering by Overnight Courier:

Computershare Trust Company, N.A.

Attn: Corporate Actions Voluntary Offer

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