By Lisa Kerner
Charlotte, N.C., Oct. 25 - Associated Estates Realty Corp. placed $100 million of senior notes with a group of institutional investors, according to an 8-K filing with the Securities and Exchange Commission on Friday.
The company placed $45 million of 4.29% series A notes due Oct. 21, 2020 and $55 million of 4.94% series B notes due Jan. 8, 2024.
Proceeds will be used to refinance debt and for general corporate purposes.
The lead placement agent was BofA Merrill Lynch. The co-placement agent was US Bancorp Investments Inc.
The notes have a make-whole call at Treasuries plus 50 basis points, according to the SEC filing.
Under the agreement, Associated Estates may not permit its ratio of consolidated outstanding debt to total asset value to be greater than 0.6 to 1.0 as of the end of any fiscal quarter.
In addition, its ratio of consolidated adjusted EBITDA to consolidated fixed charges must be no less than 1.5 to 1.0 as of the end of any fiscal quarter.
Purchasers include American Family Life Insurance Co., Guardian Life Insurance Co. of America, Nationwide Life Insurance Co., Nationwide Mutual Life Insurance Co., Ohio National Life Insurance Co., USAA Casualty Insurance Co., United Services Automobile Association and USAA Life Insurance Co.
Associated Estates Realty is a Richmond Heights, Ohio-based real estate investment trust.
| Issuer: | Associated Estates Realty Corp.
|
| Issue: | Senior notes
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| Amount: | $100 million
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| Call option: | Make-whole at Treasuries plus 50 bps
|
| Placement agents: | BofA Merrill Lynch (lead), US Bancorp Investments Inc.
|
| Settlement date: | Oct. 21
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| Distribution: | Private placement
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| Purchasers: | American Family Life Insurance Co., Guardian Life Insurance Co. of America, Nationwide Life Insurance Co., Nationwide Mutual Life Insurance Co., Ohio National Life Insurance Co., USAA Casualty Insurance Co., United Services Automobile Association and USAA Life Insurance Co.
|
|
|
| Series A notes
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| Amount: | $45 million
|
| Coupon: | 4.29%
|
| Maturity: | Oct. 21, 2020
|
|
|
| Series B notes
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| Amount: | $55 million
|
| Coupon: | 4.94%
|
| Maturity: | Jan. 8, 2024
|
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