Exhibit 1.2
CARRAMERICA REALTY CORPORATION
(a Maryland Corporation)
7,000,000 Shares of 8.57% Series B Cumulative Redeemable Preferred Stock
(Par Value $.01 per share)
(Liquidation Preference $25.00 per share)
TERMS AGREEMENT
---------------
Dated: August 7, 1997
To: CarrAmerica Realty Corporation
0000 Xxxxxxxxxxxx Xxxxxx, X.X.
Xxxxxxxxxx, X.X. 00000
Attention: Chairman of the Board of Directors
Ladies and Gentlemen:
We (the "Representatives") understand that CarrAmerica Realty
Corporation, a Maryland corporation (the "Company"), proposes to issue and sell
7,000,000 shares of 8.57% Series B Cumulative Redeemable Preferred Stock (the
"Series B Preferred Shares") (such Series B Preferred Shares being hereinafter
referred to as the "Underwritten Securities"). Subject to the terms and
conditions set forth or incorporated by reference herein, the underwriters named
below (the "Underwriters") offer to purchase, severally and not jointly, the
respective numbers of Initial Underwritten Securities (as defined in the
Underwriting Agreement referred to below) set forth below opposite their
respective names, and a proportionate share of Option Securities (as defined in
the Underwriting Agreement referred to below) to the extent any are purchased,
at the purchase price set forth below.
Underwriter Number of
----------- Initial
Underwritten
Securities
----------
Xxxxxxx, Xxxxx & Co. .................................................................. 928,000
Xxxx Xxxxx Xxxx Xxxxxx, Incorporated .................................................. 925,000
X.X. Xxxxxx Securities Inc............................................................. 925,000
PaineWebber Incorporated............................................................... 925,000
Prudential Securities Incorporated..................................................... 925,000
Xxxxx Xxxxxx Inc....................................................................... 925,000
Alex. Xxxxx & Sons Incorporated ....................................................... 87,000
Xxxxxxxxx, Lufkin & Xxxxxxxx Securities Corporation ................................... 87,000
EVEREN Securities, Inc. ............................................................... 87,000
Xxxxxxxxxxx & Co., Inc................................................................. 87,000
Wheat, First Securities, Inc........................................................... 87,000
X.X. Xxxxxxxx & Co..................................................................... 46,000
Xxxxx & Company........................................................................ 46,000
Xxxxxxx, Xxxxxx & Co................................................................... 46,000
Xxxx Xxxxxxxx Incorporated............................................................. 46,000
Xxxxxxxxxx & Co. Inc................................................................... 46,000
Interstate/Xxxxxxx Lane Corporation.................................................... 46,000
Xxxxxxxx, Lemon & Co. Incorporated..................................................... 46,000
Lafayette Investments, Inc............................................................. 46,000
XxXxxxxx & Company Securities, Inc..................................................... 46,000
XxXxxx, Xxxxx & Co., Inc............................................................... 46,000
Xxxxxx Xxxxxx & Company, Inc........................................................... 46,000
Xxxxx Xxxxxxx Inc...................................................................... 46,000
Principal Financial Securities, Inc.................................................... 46,000
Xxxxxxxx Xxxxxx Refsnes, Inc........................................................... 46,000
Xxxxxxx Xxxxx & Associates, Inc........................................................ 46,000
The Xxxxxxxx-Xxxxxxxx Company, Inc..................................................... 46,000
Xxxxx & Co., L.L.C..................................................................... 46,000
Sutro & Co. Incorporated............................................................... 46,000
Trilon International Inc............................................................... 46,000
Xxxxxx Xxxxxxx Incorporated............................................................ 46,000
U.S. Clearing Corp..................................................................... 46,000
Wedbush Xxxxxx Securities Inc.......................................................... 46,000
------
7,000,000
The Underwritten Securities shall have the following terms:
Title of Securities: 8.57% Series B Cumulative Redeemable Preferred Stock (Par
Value $.01 per share) (Liquidation Preference $25.00 per
share).
Number of Shares: 7,000,000.
Dividend Rate: 8.57% of the liquidation preference per annum (equivalent to
$2.1425 per share per annum); Payable quarterly on the last
day of February, May, August and November of each year.
2
Liquidation Preference: $25.00 per Series B Preferred Share.
Ranking: The Underwritten Securities will rank equally with the Company's
Series A Preferred Shares and senior to the Company's Common Stock.
Public offering price per share: $25.00, plus accrued dividends, if any, from the date of original issue.
Purchase price per share: $24.2125.
Number of Option Securities, if any, that
may be purchased by the Underwriters: 1,050,000.
Additional co-managers: Xxxx Xxxxx Xxxx Xxxxxx, Incorporated, X.X. Xxxxxx Securities
Inc., PaineWebber Incorporated, Prudential Securities Incorporated and
Xxxxx Xxxxxx Inc.
Closing time, date and location: August 12, 1997, 9:30 a.m. (EST), Xxxxx & Xxxxxxx L.L.P., Columbia Square,
000 Xxxxxxxxxx Xxxxxx, X.X., Xxxxxxxxxx, XX 00000-0000.
All the provisions contained in the document entitled "CarrAmerica
Realty Corporation C Common Stock, Preferred Stock, Common Stock Warrants,
Depositary Shares and Debt Securities Underwriting Agreement" to which this
Terms Agreement is attached are hereby incorporated by reference in their
entirety herein and shall be deemed to be a part of this Terms Agreement to the
same extent as if such provisions had been set forth in full herein; provided,
however that the Underwriters waive the condition set forth in Section 5(b)(2)
of the Underwriting Agreement. Terms defined in such document are used herein as
therein defined.
3
Please accept this offer no later than o'clock (New York City time) on
August , 1997 by signing a copy of this Terms Agreement in the space set forth
below and returning the signed copy to us.
Very truly yours,
XXXXXXX, SACHS & CO.
XXXX XXXXX XXXX XXXXXX, INCORPORATED
X.X. XXXXXX SECURITIES INC.
PAINEWEBBER INCORPORATED
PRUDENTIAL SECURITIES INCORPORATED
XXXXX XXXXXX INC.
By: XXXXXXX, SACHS & CO.
/s/ XXXXXXX, XXXXX & CO.
------------------------------------
(Xxxxxxx, Sachs & Co.)
For themselves and as
Representatives of the Underwriters
named herein.
Accepted:
CARRAMERICA REALTY CORPORATION
By: /s/ XXXXX X. XXXXXX
--------------------------------
Name: Xxxxx X. Xxxxxx
Title: Chief Financial Officer
