By Andrea Heisinger
New York, April 8 - Essex Property Trust, Inc. sold an upsized $65 million, or 2.6 million shares, of 7.125% perpetual cumulative preferred stock on Friday at par of $25, a source close to the sale said.
They were talked in the range of 7.125% to 7.25% and sold at the tight end of that. The size was increased from an initial $50 million, or 2 million shares, announced on Thursday.
The preferreds (BB+/BB+) are callable beginning April 13, 2016.
Wells Fargo Securities LLC and Raymond James & Associates Inc. were the bookrunners.
The co-managers were Barclays Capital Inc., RBC Capital Markets LLC, Robert W. Baird & Co. Inc., FBR, Janney Montgomery Scott LLC, Morgan Keegan & Co. Inc. and Stifel Nicolaus & Co. Inc.
Proceeds are being contributed to the company's operating partnership to repurchase series B preferred stock and for general corporate purposes.
The real estate investment trust for apartment communities is based in Palo Alto, Calif.
| Issuer: | Essex Property Trust, Inc.
|
| Issue: | Cumulative preferred stock
|
| Amount: | $65 million, increased from $50 million
|
| Shares: | 2.6 million, increased from 2 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Wells Fargo Securities LLC, Raymond James & Associates Inc.
|
| Co-managers: | Barclays Capital Inc., RBC Capital Markets LLC, Robert W. Baird & Co. Inc., FBR, Janney Montgomery Scott LLC, Morgan Keegan & Co. Inc., Stifel Nicolaus & Co. Inc.
|
| Dividends: | 7.125%
|
| Price: | Par of $25
|
| Yield: | 7.125%
|
| Call option: | On or after April 13, 2016
|
| Trade date: | April 8
|
| Settlement date: | April 13
|
| Ratings: | Standard & Poor's: BB+
|
| Fitch: BB+
|
| Price talk: | 7.125% to 7.25%
|
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