Alexandria Real Estate selling $350 million 10-year notes Wednesday

By Andrea Heisinger

New York, May 29 - Alexandria Real Estate Equities, Inc. is tapping Wednesday's market for $350 million of 10-year senior notes (Baa2/BBB-/), according to a market source and a 424B5 filing with the Securities and Exchange Commission.

The notes will have a make-whole call over Treasuries until three months prior to maturity and then will be callable at par.

Bookrunners are J.P. Morgan Securities LLC, RBC Capital Markets LLC and RBS Securities Inc.

Proceeds will be used to prepay $150 million of a 2016 unsecured senior bank term loan and to reduce the balance of an unsecured senior line of credit to zero. The remainder will be held in cash and cash equivalents to fund near-term operations related to development and redevelopment projects, to fund near-term acquisitions and for general corporate purposes.

The notes are guaranteed by Alexandria Real Estate Equities LP.

Alexandria was last in the U.S. bond market with a $550 million sale of 4.6% 10-year bonds priced at 260 basis points over Treasuries.

The real estate investment trust for life science labs is based in Pasadena, Calif.

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