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American Campus to buy 19 properties

AUSTIN, Texas -- American Campus Communities Inc. said Thursday that it will buy 19 student housing properties across the country from Kanye Anderson Capital Advisors LP in a deal worth roughly $862.8 million.

The company, which is the largest owner, manager and developer of student housing in the U.S., said the deal includes over 12,000 beds in top markets. American Campus Communities, based in Austin, Texas, is a real estate investment trust with a portfolio of 169 properties across the country.

The properties being purchased are near such colleges as Louisiana State University, Michigan State University, Texas Tech, University of Kentucky, University of Missouri, University of Southern California, and others in Georgia, Florida, Virginia and New Hampshire, North Carolina, Ohio and New York.

The company will pay $466.6 million in cash under the deal and assume roughly $396.2 million of outstanding mortgage debt. The acquisition is expected to close in the fourth quarter of 2012, with the exception of a property that is under development. That portion of the deal will close during the third quarter of 2013.

American Campus said it plans to pay for the deal with available cash, borrowings under its revolving credit line, a bridge loan facility and the sale of debt or stock. The company is selling 10 million shares of its common stock in a public offering to help fund the purchase. It is giving underwriters the option to buy up to 1.5 million extra shares.

American Campus said it will use any remaining proceeds to repay debt or for general corporate purposes.

BofA Merrill Lynch, KeyBanc Capital Markets, Deutsche Bank Securities and J.P. Morgan will serve as joint book-running managers for the offering.

Shares fell 27 cents to close at $44.25. The company's shares have traded between $36.78 and $48.10 in the past 52 weeks.