Published on 3/7/2024 in the Prospect News Investment Grade Daily.
New Issue: Essex Portfolio sells $350 million 5.5% 10-year notes at Treasuries plus 142 bps
By Wendy Van Sickle
Columbus, Ohio, March 7 – Essex Portfolio, LP priced $350 million of 5.5% 10-year guaranteed senior notes on Thursday at a spread of 142 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes were sold at 99.752 to yield 5.532%.
The notes will be guaranteed by Essex Property Trust, Inc.
The bookrunners were Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Citigroup Global Markets Inc.
Proceeds will be used to fund a portion of the repayment of Essex’s 3.875% senior notes due May 2024 at maturity and for other general corporate and working capital purposes, which may include funding acquisitions.
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: | $350 million
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| Issue: | Senior notes
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| Maturity: | April 1, 2034
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| Bookrunners: | Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Citigroup Global Markets Inc.
|
| Senior co-managers: | BMO Capital Markets Corp., Mizuho Securities USA LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Truist Securities, Inc.
|
| Co-managers: | BNP Paribas Securities Corp., Capital One Securities, Inc., Morgan Stanley & Co. LLC and Samuel A. Ramirez & Co., Inc.
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Latham & Watkins LLP and Venable LLP (Maryland law)
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| Counsel to underwriters: | Alston & Bird LLP
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| Coupon: | 5.5%
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| Price: | 99.752
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| Yield: | 5.532%
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| Spread: | Treasuries plus 142 bps
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| Call feature: | Make-whole call before Jan. 1, 2034 at Treasuries plus 25 bps; thereafter at par
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| Trade date: | March 7
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| Settlement date: | March 14
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| Distribution: | SEC registered
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| Cusip: | 29717PBA4
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