Hudson Pacific Properties rises after "pivotal" $600 mln equity raise

Hudson Pacific Properties' HPP.N shares reverse premarket losses and last up 8.9% at $2.70, an over two-mth high, early Thurs after it raises equity

Los Angeles-based office real estate investment trust early Thurs said sold ~269 mln shares, including ~71.9 mln pre-funded warrants for $600 mln gross raise

Offering price of $2.23 represents 10.1% discount to stock's last close

Cohen & Steers Capital Management indicated to buy up to $300 mln of the shares/warrants, per the SEC prospectus filing

The REIT plans to use net proceeds to repay borrowings under its revolver, repay other debt and for general purposes

BTIG, which rates HPP 'buy', says it views equity raise as a "pivotal moment" as it provides optionality to address remaining ~$1.8 bln of debt maturities over the coming five years "and buys time for strengthening office and (Hollywood) studio fundamentals to improve the company's cashflow profile"

With ~141.5 mln shares outstanding, HPP had about $350 mln market cap through Weds

BofA, Wells Fargo and RBC are lead joint-bookrunners for the offering

Through Weds close, HPP shares had fallen 18% YTD and nearly 50% over the past 12 months

Of 11 analysts covering HPP, recommendation breakdown is 3 "strong buy" or "buy", 7 "hold" and 1 "sell"; median PT is $2.50 - latest LSEG data