Published on 7/29/2019 in the Prospect News Investment Grade Daily.
New Issue: Essex Portfolio sells $400 million 3% notes due 2030 at 110 bps spread
By Cristal Cody
Tupelo, Miss., July 29 – Essex Portfolio, LP sold $400 million of 3% guaranteed senior notes due Jan. 15, 2030 (Baa1/BBB+/BBB+) on Monday at a spread of 110 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 98.632 to yield 3.155%.
Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., Jefferies LLC 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: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Jan. 15, 2030
|
| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., Jefferies LLC and MUFG
|
| Senior co-managers: | Barclays, BB&T Capital Markets, BNP Paribas Securities Corp. and Mizuho Securities USA Inc.
|
| Co-managers: | Capital One Securities, Inc., Regions Securities LLC and Scotia Capital (USA) Inc.
|
| Coupon: | 3%
|
| Price: | 98.632
|
| Yield: | 3.155%
|
| Spread: | Treasuries plus 110 bps
|
| Call feature: | Make-whole call before Oct. 15, 2029 at Treasuries plus 20 bps; thereafter at par
|
| Trade date: | July 29
|
| Settlement date: | Aug. 7
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
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