Published on 4/4/2016 in the Prospect News Investment Grade Daily.
New Issue: Essex sells upsized $450 million 3.375% 10-year notes at Treasuries plus 167 bps
By Aleesia Forni
New York, April 4 – The Essex Portfolio, LP sold an upsized $450 million of 3.375% 10-year senior notes (Baa2/BBB/BBB+) on Monday at Treasuries plus 167 basis points, according to an FWP filed with the Securities and Exchange Commission.
The offering was upsized from $300 million.
Pricing was at 99.386 to yield 3.448%.
The notes sold at the tight side of talk set in the 170 bps area over Treasuries.
The bookrunners are Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, U.S. Bancorp Investments Inc. and Jefferies.
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: | $450 million, increased from $300 million
|
| Description: | Senior notes
|
| Maturity: | April 15, 2026
|
| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, U.S. Bancorp Investments Inc., Jefferies
|
| Senior co-managers: | Barclays, BB&T Capital Markets, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., UBS Securities LLC
|
| Co-managers: | BMO Capital Markets Corp., Capital One Securities, Inc., Mizuho Securities USA Inc., Regions Securities LLC
|
| Coupon: | 3.375%
|
| Price: | 99.386
|
| Yield: | 3.448%
|
| Spread: | Treasuries plus 167 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to Jan. 15, 2026, then callable at par
|
| Trade date: | April 4
|
| Settlement date: | April 11
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 170 bps area
|
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