ck0001424182-8k_20171130.htm


Maryland	000-55774	26-1516177
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)


800 Clinton Square, Rochester, New York	14604
(Address of principal executive offices)	(Zip Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☒

On November 30, 2017, Broadstone Net Lease, Inc. (the “Company”) completed the most recent monthly closing of its ongoing private offering of shares of its common stock, par value of $0.001 per share. Currently, the Company closes sales of additional shares of its common stock monthly. At the closing on November 30, 2017, the Company sold 185,185.196 shares of its common stock at a purchase price of $81.00 per share for aggregate sale proceeds of $15,000,000.

The $15,000,000 in aggregate sale proceeds was equal to the Company’s announced monthly cap on new and additional investments for November 2017, which was announced in the Company’s November 13, 2017, earnings release. Following the November closing, there was a total of approximately $946,765 in the Company’s queue for subsequent equity closings at a per share purchase price of $81.00. The cap only applies to new or additional investments, and does not apply to the Company’s DRIP (as defined below) or equity capital received in connection with umbrella partnership real estate investment trust (“UPREIT”) transactions. For the months of November 2017, December 2017, and January 2018, new and additional investments will be limited to $15 million per month.

The Company intends to use substantially all of the net proceeds from this closing and each additional closing in its private offering, supplemented with additional borrowings, to continue to invest in additional net leased properties and for general corporate purposes.

The offer and sale of the shares of the Company’s common stock that were issued at the November 30, 2017, closing was conducted in reliance upon the exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”), provided by Rule 506(c) under Regulation D promulgated under the Securities Act.

As of November 30, 2017, there were 18,723,779.778 shares of the Company’s common stock issued and outstanding, including the shares of the Company’s common stock that were issued at the November 30, 2017, closing and 47,412.366 shares that were issued on November 15, 2017, pursuant to the terms of the Company’s Distribution Reinvestment Plan (the “DRIP”). The 47,412.366 shares of the Company’s common stock issued on November 15, 2017, pursuant to the terms of the DRIP (which was below the threshold requiring disclosure under Item 3.02 of Form 8-K), generated aggregate proceeds of $3,717,129.67. The shares issued pursuant to the DRIP were issued at a price of $79.38 per share, representing a 2% discount from the then current Determined Share Value of $81.00 per share.

In addition, as of November 30, 2017, there were 20,311,769.298 units of membership interest in Broadstone Net Lease, LLC, the Company’s subsidiary operating company (the “Operating Company”), issued and outstanding, of which 1,587,989.520, or approximately 7.82%, were noncontrolling interests held by persons who were issued membership units in exchange for their interests in properties acquired by the Operating Company. The Company is the sole managing member of the Operating Company and as of November 30, 2017, owned the remaining approximately 92.18% of the Operating Company’s issued and outstanding membership units. Each outstanding membership unit in the Operating Company is convertible on a one-for-one basis into shares of the Company’s common stock, subject to certain limitations.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BROADSTONE NET LEASE, INC.

/s/ John D. Moragne

Name: John D. Moragne

Title: Executive Vice President, General Counsel, Chief Compliance Officer, and Secretary