Published on 4/3/2017 in the Prospect News Investment Grade Daily.
New Issue: Essex Portfolio prices $350 million 3.625% 10-year notes with 135 bps spread
By Cristal Cody
Tupelo, Miss., April 3 – Essex Portfolio, LP sold $350 million of 3.625% 10-year guaranteed senior notes with a spread of Treasuries plus 135 basis points on Monday, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa1/BBB+/BBB+) priced at 99.423 to yield 3.694%.
The bookrunners were Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, U.S. Bancorp Investments Inc. and Jefferies LLC.
The notes will be guaranteed by Essex Property Trust, Inc.
Proceeds will be used to repay debt under Essex’s $1 billion unsecured line of credit facility and its $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
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Guarantor: | Essex Property Trust, Inc.
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Amount: | $350 million
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Description: | Senior notes
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Maturity: | May 1, 2027
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Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, U.S. Bancorp Investments Inc. and Jefferies LLC
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Senior co-managers: | Barclays, BB&T Capital Markets, BNP Paribas Securities Corp. and Deutsche Bank Securities Inc.
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Co-managers: | Capital One Securities, Inc., Mizuho Securities USA Inc., Regions Securities LLC and Scotia Capital (USA) Inc.
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Coupon: | 3.625%
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Price: | 99.423
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Yield: | 3.694%
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Spread: | Treasuries plus 135 bps
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Call feature: | Make-whole call before Feb. 1, 2027 at Treasuries plus 25 bps; thereafter at par
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Trade date: | April 3
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Settlement date: | April 10
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Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: BBB+
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Distribution: | SEC registered
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