MEMPHIS, Tenn., Nov. 2, 2015 /PRNewswire/ -- Mid-America
Apartment Communities, Inc. (NYSE: MAA) today announced that its
operating partnership, Mid-America Apartments, L.P. (MAALP), priced
a $400 million offering of MAALP's
4.000% senior unsecured notes due 2025 (the "Notes") under its
existing shelf registration statement. The Notes were priced at
98.990% of the principal amount. The closing of the offering
is expected to occur on November 9,
2015, subject to customary closing conditions.
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MAALP intends to use net proceeds from the offering to repay
borrowings outstanding under its $360
million secured credit facility and $750 million revolving credit facility, and for
general corporate purposes, which may include the acquisition and
development of apartment communities, the improvement of apartment
communities and the repayment of debt.
J.P. Morgan Securities LLC, Jefferies LLC, U.S. Bancorp
Investments, Inc., Wells Fargo Securities, LLC and Citigroup Global
Markets Inc. were the joint book-running managers for the
offering.
A registration statement relating to these securities has been
filed with the Securities and Exchange Commission and has become
effective. The offering of these securities will be made only by
means of a prospectus supplement and accompanying prospectus.
Copies of these documents may be obtained from: J.P. Morgan
Securities LLC, 383 Madison Avenue, New
York, New York 10179; Attention: Investment Grade Syndicate
Desk, or by calling: 212-834-4533; Jefferies LLC, 520 Madison
Avenue, New York, New York 10022,
Attention: Investment Grade Syndicate Desk, or by
calling: 1-877-877-0696; U.S. Bancorp Investments,
Inc., 214 N. Tryon St., Charlotte, North
Carolina 28202, Attention Credit Fixed Income, or by calling
1-877-558-2607; and Wells Fargo Securities, LLC, 608 2nd
Avenue, South Minneapolis, MN
55402, Attention: WFS Customer Service, or by calling: 800-645-3751
or by emailing: wfscustomerservice@wellsfargo.com.
Alternatively, investors may obtain these documents, when
available, for free by visiting EDGAR on the Securities and
Exchange Commission's website at www.sec.gov.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy the notes, nor shall there be any
sale of the notes in any jurisdiction in which such offer,
solicitation, or sale would be unlawful under the securities laws
of any such jurisdiction.
Forward-Looking Statements
We consider this and other sections of this press release to
contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, with respect to
our expectations for future periods. Forward-looking statements do
not discuss historical fact, but instead include statements related
to expectations, projections, intentions or other items related to
the future. Such forward-looking statements include, without
limitation, statements concerning property acquisitions and
dispositions, joint venture activity, development and renovation
activity as well as other capital expenditures, capital raising
activities, rent and expense growth, occupancy, financing
activities and interest rate and other economic expectations.
Words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates" and variations of such words and
similar expressions are intended to identify such forward-looking
statements. Such statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results
of operations, financial condition, performance or achievements to
be materially different from the results of operations, financial
conditions, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among other
things, unanticipated adverse business developments affecting us or
our properties and adverse changes in the real estate markets and
general and local economies and business conditions. Although we
believe that the assumptions underlying the forward-looking
statements are reasonable, any of the assumptions could be
inaccurate, and therefore such forward-looking statements included
in this press release may not prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking
statements included in this press release, the inclusion of such
information should not be regarded as a representation by us or any
other person that the results of operations, financial condition,
performance or achievements described in or implied by such
statements or our objectives and plans will be achieved.
The following factors, among others, could cause our future
results to differ materially from those expressed in the
forward-looking statements:
- inability to generate sufficient cash flows due to market
conditions, changes in supply and/or demand, competition, uninsured
losses, changes in tax and housing laws, or other factors;
- exposure, as a multifamily focused REIT, to risks inherent in
investments in a single industry;
- adverse changes in real estate markets, including, but not
limited to, the extent of future demand for multifamily units in
our significant markets, barriers of entry into new markets, which
we may seek to enter in the future, limitations on our ability to
increase rental rates, competition, our ability to identify and
consummate attractive acquisitions or development projects on
favorable terms, our ability to consummate any planned dispositions
in a timely manner on acceptable terms, and our ability to reinvest
sale proceeds in a manner that generates favorable
returns;
- failure of new acquisitions to achieve anticipated results or
be efficiently integrated;
- failure of development communities to be completed, if at all,
within budget and on a timely basis or to lease-up as
anticipated;
- unexpected capital needs;
- changes in operating costs, including real estate taxes,
utilities and insurance costs;
- losses from catastrophes in excess of our insurance
coverage;
- ability to obtain financing at favorable rates, if at all, and
refinance existing debt as it matures;
- level and volatility of interest or capitalization rates or
capital market conditions;
- loss of hedge accounting treatment for interest rate swaps or
interest rate caps;
- the continuation of the good credit of our interest rate swap
and cap providers;
- price volatility, dislocations and liquidity disruptions in the
financial markets and the resulting impact on financing;
- the effect of any rating agency actions on the cost and
availability of new debt financing;
- significant decline in market value of real estate serving as
collateral for mortgage obligations;
- significant change in the mortgage financing market that would
cause single-family housing, either as an owned or rental product,
to become a more significant competitive product;
- our ability to continue to satisfy complex rules in order to
maintain our status as a REIT for federal income tax purposes, the
ability of the Operating Partnership to satisfy the rules to
maintain its status as a partnership for federal income tax
purposes, the ability of our taxable REIT subsidiaries to maintain
their status as such for federal income tax purposes, and our
ability and the ability of our subsidiaries to operate effectively
within the limitations imposed by these rules;
- inability to attract and retain qualified personnel;
- potential liability for breaches of our privacy or information
security systems;
- potential liability for environmental contamination;
- adverse legislative or regulatory tax changes;
- litigation and compliance costs associated with laws requiring
access for disabled persons; and
- other risks identified in this prospectus supplement, the
accompanying prospectus and the documents incorporated herein and
therein by reference.
We undertake no obligation to publicly update or revise these
forward-looking statements to reflect events, circumstances or
changes in expectations after the date of this press release.
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SOURCE MAA