Alexandria to sell notes in two parts, including add-on to 4% notes

By Devika Patel

Knoxville, Tenn., Sept. 3 – Alexandria Real Estate Equities, Inc. intends to offer fixed-rate notes in two tranches, including an add-on to its 4% senior notes (Baa1/BBB+) due Feb. 1, 2050, according to a 424B5 filing with the Securities and Exchange Commission.

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

The company sold $500 million of the 4% notes in a sale that priced on July 8 and settled July 15. The notes were priced at 99.578 to yield 4.024%, with a spread of Treasuries plus 150 basis points.

The new notes have a make-whole call and then a par call. The 4% notes have a make-whole call at Treasuries plus 25 bps until Aug. 1, 2049 and then a par call.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA Inc. and TD Securities (USA) LLC are the bookrunners.

Proceeds will be used to repay the outstanding balance on the company’s unsecured senior bank term loan and to reduce the outstanding balance on its unsecured senior line of credit, with any remaining proceeds to be used for general corporate purposes.

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

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