New Issue: Alexandria Real Estate prices $1 billion of notes due 2036, 2054

By Wendy Van Sickle

Columbus, Ohio, Feb. 1 – Alexandria Real Estate Equities, Inc. priced $1 billion of guaranteed senior notes (expected: Baa1/BBB+) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.

A $400 million tranche of 5.25% notes due May 15, 2036 priced at 99.787 to yield 5.271% with a spread of 140 basis points over Treasuries.

The company sold $600 million of 5.625% notes due May 15, 2054 at 99.943 to yield 5.627%, or a Treasuries plus 150 bps spread.

Each tranche features a make-whole call and then a par call.

Goldman Sachs & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Barclays, Mizuho Securities USA LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. were the bookrunners.

The notes are guaranteed by Alexandria Real Estate Equities, LP.

Proceeds will be used initially for general corporate purposes, including a reduction of the company’s unsecured senior line of credit and commercial paper program, debt repayment and selective development, redevelopment or acquisition of properties.

As of Dec. 31, the unsecured senior line of credit was undrawn. $100 million is outstanding under the company’s commercial paper program. The commercial paper notes were issued at a weighted-average yield to maturity of 5.55%.

Pasadena, Calif.-based Alexandria Real Estate Equities is a real estate investment trust focused on life science and technology campuses.

Issuer:	Alexandria Real Estate Equities, Inc.
Guarantor:	Alexandria Real Estate Equities, LP
Amount:	$1 billion
Issue:	Senior notes
Bookrunners:	Goldman Sachs & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Barclays, Mizuho Securities USA LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
Co-managers:	BBVA Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., Capital One Securities, Inc., Evercore Group LLC, Fifth Third Securities, Inc., Huntington Securities, Inc., PNC Capital Markets LLC, Regions Securities LLC, Samuel A. Ramirez & Co., Inc. and Truist Securities, Inc.
Trustee:	Truist Bank
Counsel to issuer:	Morrison & Foerster LLP and Venable LLP (Maryland law)
Counsel to underwriters:	Clifford Chance US LLP
Trade date:	Feb. 1
Settlement date:	Feb. 15
Expected ratings:	Moody’s: Baa1
	S&P: BBB+
Distribution:	SEC registered
Notes due 2036
Amount:	$400 million
Maturity:	May 15, 2036
Coupon:	5.25%
Price:	99.787
Yield:	5.271%
Spread:	Treasuries plus 140 bps
Call features:	Make-whole call at Treasuries plus 25 bps before Feb. 15, 2036; thereafter at par
Cusip:	015271BC2
Notes due 2054
Amount:	$600 million
Maturity:	May 15, 2054
Coupon:	5.625%
Price:	99.943
Yield:	5.627%
Spread:	Treasuries plus 150 bps
Call features:	Make-whole call at Treasuries plus 25 bps before Nov. 15, 2053; thereafter at par
Cusip:	015271BD0

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