By Taylor Fox and Cristal Cody
New York, Feb. 22 – Essex Portfolio, LP priced an upsized $450 million of 1.7% seven-year guaranteed senior notes (Baa1/BBB+) on Monday at a spread of Treasuries plus 80 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes were sold at 99.423 to yield 1.788%.
Initial price talk was in the Treasuries plus 105 bps area, according to a market source.
The deal was upsized from $300 million.
The bookrunners are Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., MUFG, PNC Capital Markets LLC, Regions Securities LLC and Truist Securities, Inc.
The notes are guaranteed by Essex Property Trust, Inc.
Proceeds will be used to repay debt maturities 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: | $450 million
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| Description: | Senior notes
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| Maturity: | March 1, 2028
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| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., MUFG, PNC Capital Markets LLC, Regions Securities LLC and Truist Securities, Inc.
|
| Senior co-managers: | Capital One Securities, Inc. and Mizuho Securities USA LLC
|
| Co-managers: | Barclays, BNP Paribas Securities Corp. and Scotia Capital (USA) Inc.
|
| Coupon: | 1.7%
|
| Price: | 99.423
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| Yield: | 1.788%
|
| Spread: | Treasuries plus 80 bps
|
| Call feature: | Make-whole call before Jan. 1, 2028 at Treasuries plus 15 bps; thereafter at par
|
| Trade date: | Feb. 22
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| Settlement date: | March 1
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 105 bps area
|
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