Lexington Realty seeks to buy up to $300 million of 2023, 2024 notes

By Marisa Wong

Los Angeles, Aug. 14 – Lexington Realty Trust said it has begun cash tender offers to purchase up to $300 million combined aggregate principal amount of its outstanding $250 million of 4.25% senior notes due 2023 (Cusip: 529043AC5) and $250 million of 4.4% senior notes due 2024 (Cusip: 529043AD3).

Notes accepted for purchase will be accepted according to acceptance priority levels, with the 2023 notes having priority in acceptance over the 2024 notes.

The tender offers will expire at 11:59 p.m. ET on Sept. 11.

Holders who tender their notes at or prior to 5 p.m. ET Aug. 27, the early tender time, will be eligible to receive the applicable total consideration, which includes an early tender premium of $30 per $1,000 principal amount of notes. Holders tendering after the early tender time will be eligible to receive only the applicable tender offer consideration, which is equal to the total consideration less the early tender premium.

Lexington Realty is offering a total consideration of $1,071.25 for each $1,000 of 2023 notes and $1,093.75 for each $1,000 of 2024 notes.

In addition, the company will pay accrued interest from the last interest payment date to, but excluding, the applicable settlement date.

Early tenders are expected to settle on Aug. 31. Settlement of any final tenders is expected to occur on Sept. 15.

Holders may withdraw their tenders at any time at or prior to 5 p.m. ET on Aug. 27.

Lexington said it intends to accept for purchase all notes tendered at or prior to the early tender time, subject to the offer cap and application of the acceptance priority levels. However, if the offers are fully subscribed as of the early tender time, holders who tender after the early tender time will not have any of their notes accepted for purchase.

Notes tendered by the early tender time will be accepted for purchase in priority to notes tendered after the early deadline even if those notes tendered later have a higher acceptance priority level than the notes tendered earlier.

The tender offers may be subject to proration if the aggregate principal amount of notes tendered exceeds the maximum tender amount.

The tender offers are subject to a financing condition, namely that Lexington complete a public offering of senior debt securities that closes no later than the expiration time.

Wells Fargo Securities, LLC (866 309-6316, 704 410-4759 or liabilitymanagement@wellsfargo.com) is the dealer manager for the tender offers.

D.F. King & Co., Inc. (800 591-6309, 212 269-5550 for banks and brokers or lxp@dfking.com) is the tender and information agent.

The single-tenant industrial real estate investment trust is based in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.