By Angela McDaniels
Tacoma, Wash., March 15 - Essex Property Trust, Inc. said its operating partnership, Essex Portfolio, LP, agreed to issue $200 million of nine-year senior notes in a private placement.
The notes will be guaranteed by Essex Property, according to a company news release.
The notes will be issued in three tranches as follows: $100 million of 4.27% notes on April 30, $50 million of 4.3% notes on June 29 and $50 million of 4.37% notes on Aug. 30.
The lead placement agent is Mitsubishi UFJ Securities (USA), Inc. The co-placement agents are BMO Capital Markets, PNC Capital Markets LLC and US Bancorp Investments, Inc.
"The private placement debt market has proven to be a flexible capital option through the use of delayed fundings, tailored maturity dates and more manageable offering sizes," Mark Mikl, Essex senior vice president of capital markets, said in the release.
Proceeds will be used for general corporate purpose, including to repay a portion of the company's outstanding debt under its $425 million unsecured line of credit.
Essex is a Palo Alto, Calif.-based real estate investment trust with a focus on multifamily residential properties.
| Issuer: | Essex Portfolio, LP
|
| Guarantor: | Essex Property Trust, Inc.
|
| Issue: | Guaranteed senior notes
|
| Amount: | $200 million
|
| Tenor: | Nine years
|
| Pricing date: | March 15
|
| Distribution: | Private placement
|
|
|
| First tranche
|
| Amount: | $100 million
|
| Coupon: | 4.27%
|
| Settlement date: | April 30
|
|
|
| Second tranche
|
| Amount: | $50 million
|
| Coupon: | 4.3%
|
| Settlement date: | June 29
|
|
|
| Third tranche
|
| Amount: | $50 million
|
| Coupon: | 4.37%
|
| Settlement date: | Aug. 30
|
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