BRE Properties buys 90.2% of 4.125% convertibles in tender offer

By Susanna Moon

Chicago, Oct. 14 - BRE Properties, Inc. said it received $321,334,000 principal amount, or 90.2%, of its $356.3 million outstanding of 4.125% convertible senior notes due 2026 as of midnight ET on Oct. 13, the tender expiration.

After the purchase, there is $35 million of the notes outstanding. Payment for the notes will be made on Oct. 14.

The total payment for the offer is about $334,187,360, which will be funded with available cash and drawings under the company's revolving line of credit, according to a company press release.

BRE announced the offer on Sept. 15 at a tender price of 104, according to a dealer managing the offer, as previously reported.

The BRE Properties 4.125% convertibles were 101.75 bid prior to that announcement.

The tender offer was conducted concurrently with an offering of straight debt, but the tender was not contingent on the completion of the bond offering.

RBS Securities Inc. (877 297-9832 or 203 897-4677), Goldman Sachs & Co. (800 828-3182) and Wells Fargo Securities LLC (800 367-8652) are the dealer managers of the registered tender offer.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Mitsubishi UFJ Securities (USA), Inc., RBS Securities and UBS Securities LLC are acting as joint bookrunning managers in the bond offering.

BRE Properties is a San Francisco-based real estate investment trust that owns and manages apartment communities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.