By Lisa Kerner
Charlotte, N.C., April 25 – Equity One, Inc. agreed to sell $200 million of 10-year senior notes in a private placement.
The company expects to issue $100 million of 3.81% series A notes by May 11 and $100 million of 3.91% series B notes by Aug. 11, according to a news release.
Proceeds will be used to pay down outstanding amounts on the company’s $600 million revolving credit facility and for redevelopment projects and general corporate purposes.
“The pricing we received on these two series of notes represents spreads of 220 and 230 basis points above the 10-year Treasury yield on the date of pricing which was very compelling compared to pricing available in the public bond market at the time,” said chief financial officer Matthew Ostrower.
The notes have a make-whole call at Treasuries plus 50 bps, according to a filing with the Securities and Exchange Commission.
In addition, the company is required to offer to prepay the notes at par upon a change of control.
Equity One is a North Miami Beach, Fla.-based owner, developer and operator of shopping centers.
| Issuer: | Equity One, Inc.
|
| Issue: | Senior notes
|
| Amount: | $200 million
|
| Call option: | Make-whole call at Treasuries plus 50 bps
|
| Put option: | At par upon a change of control
|
| Distribution: | Private placement
|
|
|
| Series A
|
| Amount: | $100 million
|
| Coupon: | 3.81%
|
| Maturity: | 10 years
|
| Settlement date: | On or prior to May 11
|
|
|
| Series B
|
| Amount: | $100 million
|
| Coupon: | 3.91%
|
| Maturity: | 10 years
|
| Settlement date: | On or prior to Aug. 11
|
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