By Lisa Kerner
Charlotte, N.C., April 1 - Essex Property Trust, Inc. and its operating partnership, Essex Portfolio, LP, provided additional details about their private placement of $150 million of five-year 4.36% guaranteed senior notes announced on Thursday.
The notes have a make-whole call at Treasuries plus 50 basis points, according to an 8-K filing with the Securities and Exchange Commission. Essex Portfolio must redeem a minimum of 10% of the notes then outstanding.
Under the March 31 note purchase agreement, Essex Property agreed, among other things, to have a minimum unsecured debt ratio of not less than 150%, a minimum unsecured debt yield of not less than 11.5% for the defined period and a minimum consolidated net worth at the end of each calendar quarter of at least $850 million.
The lead placement agent was Mitsubishi UFJ Securities (USA), Inc. The co-placement agents were KeyBanc Capital Markets Inc. and PNC Capital Markets LLC.
Purchasers of the notes include Prudential Insurance Co. of America, Pruco Life Insurance Co., Prudential Retirement Insurance and Annuity Co., BCBSM, Inc. DBA Blue Cross and Blue Shield of Minnesota, Physicians Mutual Insurance Co., Aviva Life and Annuity Co., United Services Automobile Association, USAA Life Insurance Co., Minnesota Life Insurance Co., American Republic Insurance Co., NGM Insurance Co., Gleaner Life Insurance Society, Protective Life Insurance Co., Protective Life Insurance Co. of New York, Blue Cross Blue Shield of Mississippi, Blue Cross Blue Shield of Wyoming, Pennsylvania Professional Liability Joint Underwriting Association, EquiTrust Life Insurance Co., Farm Bureau Life Insurance Co., Farm Bureau Property and Casualty Insurance Co. and Primerica Life Insurance Co.
As previously reported, proceeds from the sale of the notes will be used to repay a portion of the outstanding debt under Essex Property's $275 million line of credit and for general corporate purposes.
Essex is a Palo Alto, Calif.-based real estate investment trust. The majority of its real estate consists of apartment communities.
| Issuers: | Essex Property Trust, Inc. and Essex Portfolio, LP
|
| Issue: | Guaranteed senior notes
|
| Amount: | $150 million
|
| Maturity: | March 31, 2016
|
| Coupon: | 4.36%
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Agents: | Mitsubishi UFJ Securities (USA), Inc. (lead), KeyBanc Capital Markets Inc. and PNC Capital Markets LLC
|
| Settlement date: | March 31
|
| Distribution: | Private placement
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
