By Lisa Kerner
Charlotte, N.C., Jan. 22 - Associated Estates Realty Corp. issued $150 million of senior notes in two tranches in a private placement.
The notes were issued as $63 million of 4.02% eight-year notes and $87 million of 4.45% 10-year notes.
The bookrunner and lead placement agent was Bank of America Merrill Lynch. RBS Securities Inc. was the co-placement agent.
According to Associated Estates, the total issuance has a weighted average term of 9.2 years at a weighted average interest rate of 4.27%.
Proceeds were used to repay borrowings under Associated Estates' unsecured credit facility, including amounts borrowed in December to repay two mortgages totaling about $33.6 million, a company news release said.
"Completing this transaction extends our maturities, reduces our floating-rate debt and enhances our financial flexibility," president and chief executive officer Jeffrey I. Friedman said in the release.
Associated Estates Realty is a Richmond Heights, Ohio-based real estate investment trust.
| Issuer: | Associated Estates Realty Corp.
|
| Issue: | Senior notes
|
| Amount: | $150 million
|
| Bookrunner: | Bank of America Merrill Lynch
|
| Placement agents: | Bank of America Merrill Lynch, RBS Securities Inc.
|
| Announcement date: | Jan. 22
|
| Distribution: | Private placement
|
|
|
| Tranche 1
|
| Amount: | $63 million
|
| Maturity: | Eight years
|
| Coupon: | 4.02%
|
|
|
| Tranche 2
|
| Amount: | $87 million
|
| Maturity: | 10 years
|
| Coupon: | 4.45%
|
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