By Cristal Cody
Tupelo, Miss., June 17 – Essex Portfolio, LP priced a $150 million tap of its 2.65% guaranteed senior notes due March 15, 2032 (Baa1/BBB+/BBB+) on Wednesday at a spread of Treasuries plus 135 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the Treasuries plus 155 bps area.
The notes were sold at 105.66 to yield 2.093%.
U.S. Bancorp Investments Inc., Jefferies LLC, Regions Securities LLC and SunTrust Robinson Humphrey Inc. were the bookrunners.
Essex originally sold $500 million of the notes on Feb. 4 at 99.628 to yield 2.686%, or Treasuries plus 108 bps. The total outstanding is now $650 million.
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 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.
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| Amount: | $150 million reopening
|
| Description: | Senior notes
|
| Maturity: | March 15, 2032
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| Bookrunners: | U.S. Bancorp Investments Inc., Jefferies LLC, Regions Securities LLC and SunTrust Robinson Humphrey Inc.
|
| Coupon: | 2.65%
|
| Price: | 105.66
|
| Yield: | 2.093%
|
| Spread: | Treasuries plus 135 bps
|
| Call feature: | Make-whole call before Dec. 15, 2031 at Treasuries plus 20 bps; thereafter at par
|
| Trade date: | June 17
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| Settlement date: | June 19
|
| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 155 bps area
|
| Total outstanding: | $650 million, including $500 million of notes priced Feb. 4 at 99.628 to yield 2.686%, or Treasuries plus 108 bps
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