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Essex Property gives early exchange update for three BRE note series
By Susanna Moon
Chicago, March 19 - Essex Property, Trust, Inc. announced the early tender results of operating partnership Essex Portfolio, LP's offer to swap out three series of notes, each with $300 million outstanding, issued by BRE Properties, Inc.
As of 5 p.m. ET on March 18, the consent date, investors had tendered the following percentage of notes:
• 91.4% of the 5.5% senior notes due 2017;
• 94.19% of the 5.2% senior notes due 2021; and
• 94.87% of the 3.375% senior notes due 2023.
As a result, the company received the needed majority of consents to amend each series of notes to eliminate substantially all of the restrictive and affirmative covenants, eliminate an event of default provision and modify other provisions, according to a company press release.
The exchange offers will continue until 11:59 p.m. ET on April 1. The offer began March 7.
The offers are conditioned on the completion of BRE's merger with a wholly owned subsidiary of Essex.
As previously announced, the company is offering new 5.5% senior notes due 2017, 5.2% senior notes due 2021 and 3.375% senior notes due 2023 to be issued by Essex Portfolio and guaranteed by Essex Property.
For each $1,000 principal amount of existing notes, Essex will issue a like amount of new notes and a cash payment of $2.50 to those who tender by the consent deadline. The total exchange value includes an early participation premium of $30.00 of notes and the $2.50 in cash.
Those who tender after the early deadline will receive the total exchange value less the early premium and cash payment.
D.F. King & Co., Inc. is the information agent (800 967-4607 or call collect 212 269-5550; dfking.com/BRE).
Essex is a Palo Alto, Calif.-based real estate investment trust with a focus on multifamily residential properties.
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