Published on 2/27/2018 in the Prospect News Investment Grade Daily.
New Issue: Essex Portfolio prices $300 million 4.5% 30-year notes to yield 133 bps over Treasuries
By Cristal Cody
Tupelo, Miss., Feb. 27 – Essex Portfolio, LP sold $300 million of 4.5% 30-year guaranteed senior notes at a 133 basis points spread over Treasuries on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa1/BBB+/BBB+) priced at 99.591 to yield 4.525%.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Jefferies & Co. and MUFG were the bookrunners.
The notes are guaranteed by Essex Property Trust, Inc.
Proceeds will be used to repay debt under Essex’s $1.2 billion unsecured line of credit facility and its $35 million unsecured working capital line of credit facility and for other general corporate and working capital purposes.
Palo Alto, Calif.-based Essex Portfolio is a real estate investment trust.
| Issuer: | Essex Portfolio, LP
|
| Guarantor: | Essex Property Trust, Inc.
|
| Amount: | $300 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2048
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Jefferies & Co. and MUFG
|
| Senior co-managers: | Barclays, BB&T Capital Markets, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Mizuho Securities USA Inc.
|
| Co-managers: | Capital One Securities, Inc., Regions Securities LLC and Scotia Capital (USA) Inc.
|
| Coupon: | 4.5%
|
| Price: | 99.591
|
| Yield: | 4.525%
|
| Spread: | Treasuries plus 133 bps
|
| Call feature: | Make-whole call before Sept. 15, 2047 at Treasuries plus 20 bps; thereafter at par
|
| Trade date: | Feb. 27
|
| Settlement date: | March 8
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
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