BRE launches 4.125% convertibles tender offer, straight bond offering

By Rebecca Melvin

New York, Sept. 15 - BRE Properties Inc. launched a cash tender offer for any and all of its $356.3 million outstanding of 4.125% convertible senior notes due 2026 at a tender price of 104, according to a dealer managing the offer.

The BRE Properties 4.125% convertibles were 101.75 bid prior to the Wednesday announcement.

The tender offer, which is set to expire at midnight ET on Oct. 13, is being conducted concurrently with an offering of straight debt, but the tender is not contingent on the completion of the bond offering.

RBS Securities Inc., Goldman, Sachs & Co. and Wells Fargo Securities LLC are the dealer managers of the registered tender offer.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Mitsubishi UFJ Securities (USA), Inc., RBS Securities Inc. and UBS Securities LLC are acting as joint bookrunning managers in the bond offering.

Proceeds of the offering of new senior unsecured notes, made under an effective shelf registration, are intended to be used to repay borrowings under BRE's $750 million unsecured credit facility. A portion of the proceeds may also fund the purchase of the 4.125% convertibles tendered.

BRE Properties is a San Francisco-based real estate investment trust that owns and manages apartment communities.

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