Paramount Group (PGRE) IPO Opens at $18.49/Share; Priced at $17.50/Share

Paramount Group, Inc. (NYSE: PGRE), a Maryland corporation organized to qualify as a real estate investment trust focused on owning, operating and managing high-quality, Class A office properties in select central business district submarkets of New York City, Washington, D.C. and San Francisco, opened for trading at $18.49 per share after pricing 131 million shares at $17.50 apiece.

The offering is expected to close on November 24, 2014, subject to customary closing conditions. The Company has granted the underwriters a 30-day option to purchase up to an additional 19,650,000 shares of common stock at the public offering price, less the underwriting discount, to cover over-allotments, if any.

The net proceeds of the offering are estimated to be approximately $2.1 billion after deducting underwriting discounts and commissions and estimated offering expenses, prior to any exercise of the underwriters’ over-allotment option. The Company intends to use the net proceeds from the offering to repay outstanding indebtedness and any applicable prepayment costs, exit fees, defeasance costs and settlement of interest rate swap liabilities associated with such repayment and to pay cash consideration in connection with its formation transactions. The Company expects to use any remaining net proceeds for general corporate purposes, capital expenditures and potential future acquisitions.

BofA Merrill Lynch, Morgan Stanley and Wells Fargo Securities are acting as active joint book-running managers of the offering.

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