Colonial Properties buys back $315.5 million unsecured senior notes

By Jennifer Chiou

New York, July 23 - Colonial Properties Trust announced the repurchase of a total of $315.5 million of its unsecured senior notes during the second quarter ended June 30.

Of this total amount, $250 million of the notes was repurchased in the company's previously announced tender offer that closed on May 4.

The remainder was repurchased under the company's previously announced unsecured note repurchase program.

Colonial said that the purchases were made at an average 5.9% discount to par value, which represents a 6.8% yield to maturity.

The purchases resulted in the recognition of net gains of $16.2 million during the quarter.

Thus far in 2009, the company has repurchased $412.4 million of its outstanding unsecured notes.

Thomas H. Lowder, the company's chairman and chief executive officer, said in a news release: "We eliminated all but $44 million of our 2010 maturities with these transactions and took advantage of the favorable pricing available in the market."

Colonial Properties is a multifamily real estate investment trust based in Birmingham, Ala.

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