By Cristal Cody
Tupelo, Miss., Aug. 10 – Essex Portfolio, LP sold $600 million of guaranteed senior notes (Baa1/BBB+/BBB+) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $300 million of 1.65% notes due Jan. 15, 2031 at 99.035 to yield 1.752%, or a Treasuries plus 118 basis points spread.
Initial price talk was at the 145 bps over Treasuries area.
A $300 million offering of 2.65% 30-year notes priced at 99.691 to yield 2.665% and with a spread of 143 bps over Treasuries.
The 30-year notes were talked at the 170 bps spread area.
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.
The notes are guaranteed by Essex Property Trust, Inc.
Proceeds will be used to repay upcoming debt maturities, including about $50 million of 4.37% senior private placement notes due August 2021, about $50 million of 4.3% senior private placement notes due June 2021, about $100 million of 4.27% senior private placement notes due April 2021 and $28.2 million of 5.4% secured mortgage notes due April 2021; to fund the make-whole redemption of $300 million of 3.625% senior notes due August 2022; 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: | $600 million
|
| Description: | Senior notes
|
| 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: | BNP Paribas Securities Corp., Mizuho Securities USA Inc., Regions Securities LLC and Truist Securities, Inc.
|
| Co-managers: | Barclays, Capital One Securities, Inc. and Scotia Capital (USA) Inc.
|
| Call feature: | Make-whole call before Oct. 15, 2029 at Treasuries plus 20 bps; thereafter at par
|
| Trade date: | Aug. 10
|
| Settlement date: | Aug. 24
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Long 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Jan. 15, 2031
|
| Coupon: | 1.65%
|
| Price: | 99.035
|
| Yield: | 1.752%
|
| Spread: | Treasuries plus 118 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Oct. 15, 2030; thereafter at par
|
| Price guidance: | Treasuries plus 145 bps area
|
|
|
| 30-year notes
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| Amount: | $300 million
|
| Maturity: | Sept. 1, 2050
|
| Coupon: | 2.65%
|
| Price: | 99.691
|
| Yield: | 2.665%
|
| Spread: | Treasuries plus 143 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before March 1, 2050; thereafter at par
|
| Price guidance: | Treasuries plus 170 bps area
|
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