Published on 9/3/2019 in the Prospect News Investment Grade Daily.
New Issue: Alexandria Real Estate Equities prices $600 million senior notes in two parts
Chicago, Sept. 3 – Alexandria Real Estate Equities, Inc. priced $600 million of guaranteed senior notes (Baa1/BBB+) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
A $400 million tranche of 2.75% notes due Dec. 15, 2029 priced at 99.842 to yield 2.767% with a spread of 130 basis points over Treasuries.
The company sold $200 million of 4% notes due Feb. 1, 2050 at 110.38 to yield 3.441%, or a Treasuries plus 150 bps spread.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA LLC and TD Securities (USA) LLC were the bookrunners.
The notes are guaranteed by Alexandria Real Estate Equities, LP.
Proceeds will be used to repay the outstanding balance on the company’s unsecured senior bank term loan and to reduce the outstanding balance on its unsecured senior line of credit, with any remaining proceeds to be used for general corporate purposes.
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.
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| Guarantor: | Alexandria Real Estate Equities, LP
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| Amount: | $600 million
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| Description: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA LLC and TD Securities (USA) LLC
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| Co-managers: | BTIG, LLC, Evercore Group LLC, Barclays, BB&T Capital Markets, a division of BB&T Securities, LLC, BBVA Securities Inc., Capital One Securities, Inc., RBC Capital Markets, LLC, Regions Securities LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
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| Trade date: | Sept. 3
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| Settlement date: | Sept. 12
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Distribution: | SEC registered
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|
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| New notes due 2029
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| Amount: | $400 million
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| Maturity: | Dec. 15, 2029
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| Coupon: | 2.75%
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| Price: | 99.842
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| Yield: | 2.767%
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| Spread: | Treasuries plus 130 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps before Sept. 15, 2029; thereafter at par
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| Add-on notes due 2050
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| Amount: | $200 million, additional notes
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| Maturity: | Feb. 1, 2050
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| Coupon: | 4%
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| Price: | 110.38
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| Yield: | 3.441%
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| Spread: | Treasuries plus 150 bps
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| Call features: | Make-whole call at Treasuries plus 25 bps before Aug. 1, 2049; thereafter at par
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| Original amount: | $500 million issued on July 15, 2019
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