By Devika Patel and Cristal Cody
Knoxville, Tenn., May 17 – Essex Portfolio, LP priced $300 million of 2.55% 10-year guaranteed senior notes (Baa1/BBB+) on Monday at a spread of Treasuries plus 98 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes were sold at 99.367 to yield 2.622%.
Initial price talk was in the Treasuries plus 125 bps area, according to a market source.
The notes will be guaranteed by Essex Property Trust, Inc.
The bookrunners were Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., MUFG and PNC Capital Markets LLC.
Proceeds will be used to repay upcoming debt maturities, to fund the redemption of $300 million 3.375% senior notes due January 2023 and for other general corporate and working capital purposes.
Based in Palo Alto, Calif., Essex Portfolio is a real estate investment trust.
| Issuer: | Essex Portfolio, LP
|
| Guarantor: | Essex Property Trust, Inc.
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| Amount: | $300 million
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| Description: | Senior notes
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| Maturity: | June 15, 2031
|
| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., MUFG and PNC Capital Markets LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., Mizuho Securities USA LLC, Scotia Capital (USA) Inc. and Truist Securities Inc.
|
| Co-managers: | Capital One Securities, Inc. and Regions Securities LLC
|
| Coupon: | 2.55%
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| Price: | 99.367
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| Yield: | 2.622%
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| Spread: | Treasuries plus 98 bps
|
| Call feature: | Make-whole call before March 15, 2031 at Treasuries plus 15 bps; thereafter at par
|
| Trade date: | May 17
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| Settlement date: | June 1
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 125 bps area
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