New York, May 31 – Easterly Government Properties, Inc. completed a $175 million private placement of notes in three tranches, according to a news release.
The company, through its Easterly Government Properties, LP operating partnership, sold $95 million of 4.05% series A senior notes due 2027, $50 million of 4.15% series B senior notes due 2029 and $30 million of 4.3% series C senior notes due 2032.
Combined the debt has a weighted average maturity of 11.4 years and a weighted average interest rate of 4.12%.
Citigroup was the placement agent.
Proceeds will be used to repay revolving credit facility borrowings and for general corporate purposes.
“We are pleased to announce the completion of this successful inaugural private placement note issuance which will meaningfully enhance the company’s balance sheet by extending the duration of its liabilities and providing the company with enough dry powder for future acquisitions,” said Meghan G. Baivier, chief financial and operating officer of Easterly, in a news release.
“We believe Easterly’s business model and the credit quality of the company’s portfolio resonated with investors, which translated into strong pricing for this transaction.”
Easterly is a Washington, D.C.-based real estate investment trust focused on class A commercial properties leased to U.S. government agencies.
Issuer: | Easterly Government Properties, LP
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Issue: | Senior notes
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Amount: | $175 million
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Placement agent: | Citigroup
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Settlement date: | May 25
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Distribution: | Private placement
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Series A notes
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Amount: | $95 million
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Maturity: | May 25, 2027
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Coupon: | 4.05%
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Series B notes
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Amount: | $50 million
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Maturity: | May 25, 2029
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Coupon: | 4.15%
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Series C notes
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Amount: | $30 million
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Maturity: | May 25, 2032
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Coupon: | 4.30%
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