Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events
9 Months Ended
Sep. 30, 2017
Subsequent Events [Abstract]  
Subsequent Events
21. Subsequent Events
Mustang Manufacturing Facility
On October 27, 2017, Mustang entered into a lease agreement with WCS - 377 Plantation Street, Inc., a Massachusetts nonprofit corporation ("Landlord"). Pursuant to the terms of the lease agreement, Mustang agreed to lease 27,043 sf from the Landlord for the facility through November 2026, subject to additional extensions at Mustang’s option. Base rent, net of abatements of $0.6 million, over the lease term totals approximately $3.6 million, on a triple-net basis. Mustang plans to make improvements to the facility of approximately $3.5 million.
The terms of the lease also require that Mustang post an initial security deposit of $0.8 million, in the form of $0.5 million letter of credit and $0.3 million in cash, which shall increase to $1.3 million ($1.0 million letter of credit, $0.3 million in cash) when the space is fully occupied by Mustang. After the fifth lease year, the letter of credit obligation is subject to reduction.
The facility is expected to be operational for the production of personalized CAR T therapies in 2018.
Perpetual Preferred Offering
On November 6, 2017, the Company priced an underwritten public offering of one million shares of our 9.375% Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Perpetual Preferred Stock”) at a price of $25.00 per share, with expected gross proceeds to us of $25 million. In addition, the Company granted the underwriters a 30-day option to purchase up to 150,000 additional shares at the public offering price, less underwriting discounts and commissions. The offering is expected to close on November 14, 2017, subject to customary closing conditions. The Series A Perpetual Preferred Stock received an “A-” investment-grade rating from Egan-Jones Rating Co., an independent, unaffiliated rating agency.