UDR to sell 5.75 million shares in public offering

Underwriters have the option to buy up to an additional 862,500 shares to cover overallotments, if any.

UDR will use proceeds to repay $116.1 million outstanding under its existing credit facility, with the rest used for working capital and general corporate purposes.

Merrill Lynch & Co., Citi and Morgan Stanley will serve as joint book running managers for the offering.

Shares of UDR declined $1.72, or 6.6 percent, to $24.43 in afternoon trading.