By Cristal Cody
Tupelo, Miss., Feb. 4 – Essex Portfolio, LP priced an upsized $500 million of 2.65% guaranteed senior notes due March 15, 2032 (Baa1/BBB+/BBB+) on Tuesday at a spread of Treasuries plus 108 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes were sold at 99.628 to yield 2.686%.
Initial price talk was in the Treasuries plus 135 bps area.
The deal was upsized from $400 million.
Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., Jefferies LLC and MUFG were the bookrunners.
Essex held fixed income investor meetings for the offering on Monday.
The notes are guaranteed by Essex Property Trust, Inc.
Proceeds will be used to repay debt under the company’s $1.2 billion unsecured line of credit facility and its $35 million unsecured working capital line of credit facility and for other general corporate and working capital purposes.
Palo Alto, Calif.-based Essex Portfolio is a real estate investment trust.
| Issuer: | Essex Portfolio, LP
|
| Guarantor: | Essex Property Trust, Inc.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2032
|
| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., Jefferies LLC and MUFG
|
| Senior co-managers: | Barclays, BNP Paribas Securities Corp., Mizuho Securities USA Inc. and SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | Capital One Securities, Inc., Regions Securities LLC and Scotia Capital (USA) Inc.
|
| Coupon: | 2.65%
|
| Price: | 99.628
|
| Yield: | 2.686%
|
| Spread: | Treasuries plus 108 bps
|
| Call feature: | Make-whole call before Dec. 15, 2031 at Treasuries plus 20 bps; thereafter at par
|
| Trade date: | Feb. 4
|
| Settlement date: | Feb. 11
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor meetings
|
| Price guidance: | Treasuries plus 135 bps area
|
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