Federal Realty plans to redeem all $150 million 5.95% notes due 2014

By Jennifer Chiou

New York, Dec. 4 - Federal Realty Investment Trust intends to use partial proceeds from its upcoming offering of senior notes to redeem all $150 million of its outstanding 5.95% notes due Aug. 15, 2014, according to a 424B5 filing with the Securities and Exchange Commission.

In addition, the company expects to use proceeds to pay down $72 million it plans to draw under its $600 million revolving credit facility due to a mortgage note redemption.

Remaining proceeds will go towards general corporate purposes.

For the 5.95% note redemption, the filing stated that the company will pay a roughly $5 million make-whole premium.

As of Dec. 1, the company said it had no outstanding balance under its revolver. It plans to repay on Dec. 5 its 7.5% mortgage notes due 2014 in full using cash on hand and a draw of about $72 million under the revolver.

The filing stated the outstanding amount of mortgage notes due 2014 is $129 million.

The real estate investment trust for retail and mixed-use buildings is based in Rockville, Md.

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