Published on 11/9/2017 in the Prospect News Investment Grade Daily.
New Issue: Alexandria Real Estate sells $600 million 3.45% notes due 2025 at 128 bps spread
By Cristal Cody
Tupelo, Miss., Nov. 9 – Alexandria Real Estate Equities, Inc. priced $600 million of 3.45% guaranteed senior notes due April 30, 2025 on Thursday at 99.813 to yield 3.479%, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa2/BBB) priced with a Treasuries plus 128 basis points spread.
Mizuho Securities USA Inc., BBVA Securities Inc., J.P. Morgan Securities LLC, Evercore Group LLC and TD Securities (USA) LLC were the bookrunners.
The notes will be guaranteed by Alexandria Real Estate Equities, LP.
Proceeds will be used to repay $211.3 million of floating-rate secured notes due Aug. 23, 2018 and $177.7 million of floating-rate secured notes due April 20, 2019 and for general corporate purposes, including reducing debt under the company’s unsecured senior line of credit.
Pasadena, Calif.-based Alexandria Real Estate Equities is a real estate investment trust focused on life science and technology campuses.
| Issuer: | Alexandria Real Estate Equities, Inc.
|
| Guarantor: | Alexandria Real Estate Equities, LP
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| Amount: | $600 million
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| Description: | Senior notes
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| Maturity: | April 30, 2025
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| Bookrunners: | Mizuho Securities USA Inc., BBVA Securities Inc., J.P. Morgan Securities LLC, Evercore Group LLC and TD Securities (USA) LLC
|
| Co-managers: | BNP Paribas Securities Corp., BTIG, LLC, Capital One Securities, Inc., MUFG, PNC Capital Markets LLC, RBC Capital Markets, LLC, Regions Securities LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and UBS Securities LLC
|
| Coupon: | 3.45%
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| Price: | 99.813
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| Yield: | 3.479%
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| Spread: | Treasuries plus 128 bps
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| Call features: | Make-whole call equal to par and Treasuries plus 20 bps before Feb. 28, 2025; thereafter at par
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| Trade date: | Nov. 9
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| Settlement date: | Nov. 20
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Distribution: | SEC registered
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