AmREIT begins tender offer for convertible class B common shares

By Angela McDaniels

Seattle, Oct. 12 - AmREIT began a tender offer to purchase its roughly 2.1 million outstanding class B common shares of beneficial interest for $9.25 per share, according to a new release.

The tender offer ends at 5 p.m. ET on Dec. 10.

The shares were issued in July 2002 with a fixed dividend of 8% and are convertible on a one-for-one basis into the REIT's publicly traded class A common shares, which closed at $7.54 (Amex: AMY) on Wednesday.

"We intend to fund this tender offer with debt, initially through our credit facility, thereby reducing our cost of capital and providing additional liquidity for the class B shareholders," chief financial officer Chad Braun said in the release.

"This transaction will be accretive for the company and is consistent with our stated goal of simplifying our balance sheet."

AmREIT class B common shareholders of record as of Oct. 11 can direct questions to Wells Fargo Shareowner Services (800 380-1372).

AmREIT is a Houston-based real estate investment trust.

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