Published on 3/10/2015 in the Prospect News Investment Grade Daily.
New Issue: Essex Portfolio sells upsized $500 million 3.5% 10-year notes at 140 bps spread
By Aleesia Forni
Virginia Beach, March 10 – The Essex Portfolio, LP sold an upsized $500 million offering of 3.5% 10-year senior notes (Baa2/BBB/BBB+) on Tuesday with a spread of Treasuries plus 140 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes sold tighter than initial talk set at 145 bps to 150 bps over Treasuries.
Pricing was at 99.747 to yield 3.53%.
The bookrunners were Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG and U.S. Bancorp Investments Inc.
The notes will be guaranteed by Essex Property Trust, Inc.
Proceeds will be used to repay debt under the company’s $1 billion unsecured line of credit facility and $25 million unsecured working capital line of credit facility, and for other general corporate and working capital purposes.
Based in Palo Alto, Calif., Essex Portfolio is a real estate investment trust.
| Issuer: | Essex Portfolio LP
|
| Guarantor: | Essex Property Trust Inc.
|
| Amount: | $500 million, upsized from $400 million
|
| Description: | Senior notes
|
| Maturity: | April 1, 2025
|
| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, U.S. Bancorp Investments Inc.
|
| Senior co-managers: | Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., UBS Securities LLC
|
| Co-managers: | BB&T Capital Markets, BMO Capital Markets Corp., Capital One Securities Inc., Comerica Securities Inc., HSBC Securities (USA) Inc., PNC Capital Markets LLC, Regions Securities LLC
|
| Coupon: | 3.5%
|
| Price: | 99.747
|
| Yield: | 3.53%
|
| Spread: | 140 bps over Treasuries
|
| Make-whole call: | 25 bps over Treasuries prior to Jan. 1, 2025, then callable at par
|
| Trade date: | March 10
|
| Settlement date: | March 17
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Price talk: | 145 bps to 150 bps over Treasuries
|
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