Published on 7/9/2014 in the Prospect News Investment Grade Daily.
New Issue: Alexandria Real Estate prices $700 million of notes due 2020, 2029
By Aleesia Forni
Virginia Beach, July 9 – Alexandria Real Estate Equities, Inc. tapped Wednesday’s market for a $700 million two-part offering of senior notes in tranches due 2020 and 2029, according to a market source and a FWP filing with the Securities and Exchange Commission.
The sale included $400 million of 2.75% notes due 2020 priced at 99.793 to yield 2.791%, or Treasuries plus 110 basis points.
There was also $300 million of 4.5% notes due 2029 sold at Treasuries plus 195 bps.
Pricing was at 99.912 to yield 4.508%.
Bookrunners were J.P. Morgan Securities LLC, Barclays and Goldman Sachs & Co.
Proceeds will be used to prepay $100 million of a 2016 unsecured senior bank term loan and to reduce the outstanding balance of an unsecured senior line of credit.
The notes are guaranteed by Alexandria Real Estate Equities LP.
The real estate investment trust for life science labs is based in Pasadena, Calif.
| Issuer: | Alexandria Real Estate Equities Inc.
|
| Guarantor: | Alexandria Real Estate Equities LP
|
| Issue: | Senior notes
|
| Amount: | $700 million
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Barclays, Goldman Sachs & Co., BBVA Securities Inc., Mitsubishi UFJ Securities (USA), Inc., RBC Capital Markets, LLC, RBS Securities Inc., Scotia Capital (USA) Inc.
|
| Senior co-managers: | BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC
|
| Co-managers: | Cowen and Co., LLC, HSBC Securities (USA) Inc., JMP Securities LLC, PNC Capital Markets LLC, Santander Investment Securities Inc.
|
| Trade date: | July 9
|
| Settlement date: | July 18
|
| Distribution: | SEC registered
|
|
|
| Notes due 2020
|
| Amount: | $400 million
|
| Maturity: | Jan. 15, 2020
|
| Coupon: | 2.75%
|
| Price: | 99.793
|
| Yield: | 2.791%
|
| Spread: | Treasuries plus 110 bps
|
| Price talk: | Treasuries plus 115 bps area
|
|
|
| Notes due 2029
|
| Amount: | $300 million
|
| Maturity: | July 30, 2029
|
| Coupon: | 4.5%
|
| Price: | 99.912
|
| Yield: | 4.508%
|
| Spread: | Treasuries plus 195 bps
|
| Price talk: | Treasuries plus 200 bps area
|
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