By Andrea Heisinger
New York, Sept. 23 - Washington Real Estate Investment Trust priced $250 million of 4.95% 10-year senior notes late on Thursday to yield a spread of 250 basis points over Treasuries, an informed source said.
The notes (Baa1/BBB+) priced at the wide end of guidance in the 237.5 to 250 bps range. They priced at 99.199 to yield 5.053%.
The securities are callable at a make-whole of Treasuries plus 40 bps before April 1, 2020 and at par plus accrued interest after until maturity.
Bookrunners were Citigroup Global Markets and Wells Fargo Securities.
Proceeds are being used for the purchase of outstanding 3.875% convertible senior notes due Sept. 15, 2026 and 5.95% notes due June 15, 2011, with the remainder to repay amounts under lines of credit or for general corporate purposes.
The owner of properties in the Washington DC metro area is based in Rockville, Maryland.
| Issuer: | Washington REIT
|
| Issue: | Senior notes
|
| Amount: | $250 million
|
| Maturity: | Oct. 1, 2020
|
| Bookrunners: | Citigroup Global Markets, Wells Fargo Securities
|
| Coupon: | 4.95%
|
| Price: | 99.199
|
| Yield: | 5.053%
|
| Spread: | Treasuries plus 250 bps
|
| Call: | Make-whole at Treasuries plus 40 bps before April 1, 2020 and after at par plus accrued interest
|
| Trade date: | Sept. 23
|
| Settlement date: | Sept. 30
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Price talk: | 237.5 to 250 bps
|
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