American Campus Communities, Inc. Announces Pricing of $400 Million 2.850 Percent Senior Unsecured Notes Due 2030
January 15 2020 - 7:08PM
Business Wire
American Campus Communities, Inc. (NYSE:ACC), the largest owner,
manager and developer of high-quality student housing properties in
the U.S., today announced that its operating partnership, American
Campus Communities Operating Partnership LP, priced a $400 million
offering of senior unsecured notes under its existing shelf
registration. These 10-year notes were issued at 99.810 percent of
par value with a coupon of 2.850 percent and are fully and
unconditionally guaranteed by American Campus Communities, Inc.
Interest on the notes is payable semi-annually on February 1 and
August 1, with the first payment due and payable on August 1, 2020.
The notes will mature on February 1, 2030. American Campus
Communities Operating Partnership LP expects to use the net
proceeds (after expenses) of approximately $394.3 million, together
with cash on hand or borrowings under its revolving credit
facility, to fund the early redemption of all of the $400 million
aggregate principal amount of its 3.350% Senior Notes due 2020,
which includes a make-whole premium and accrued and unpaid interest
to the date of redemption. In connection with this redemption, we
expect to record a one-time charge of approximately $4.3 million,
or approximately $0.03 per share, to our net income in the first
quarter of 2020. Settlement is scheduled for January 30, 2020,
subject to the satisfaction of customary closing conditions. The
consummation of this offering is not conditional upon the
completion of the redemption of the 3.350% Senior Notes due
2020.
U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC,
BBVA Securities Inc., BofA Securities, Inc., Deutsche Bank
Securities Inc. and J.P. Morgan Securities LLC are the Joint
Book-Running Managers for the offering and Capital One Securities,
Inc., Jefferies LLC, KeyBanc Capital Markets Inc., Piper Sandler
& Co. and Regions Securities LLC are the Co-Managers.
American Campus Communities, Inc. and American Campus
Communities Operating Partnership LP have filed a registration
statement (including a prospectus) with the Securities and Exchange
Commission (“SEC”) for the offering to which this press release
relates. Before you invest, you should read the prospectus in that
registration statement and other documents that American Campus
Communities, Inc. and American Campus Communities Operating
Partnership LP have filed with the SEC, including the prospectus
supplement, for more complete information about American Campus
Communities, Inc., American Campus Communities Operating
Partnership LP and this offering. You may get these documents for
free by visiting the SEC Web site at www.sec.gov. Alternatively,
American Campus Communities, Inc., American Campus Communities
Operating Partnership LP or any underwriter or any dealer
participating in the offering will arrange to send you the
prospectus and the accompanying prospectus supplement if you
request it by contacting U.S. Bancorp Investments, Inc., toll-free
at 1-877-558-2607 or Wells Fargo Securities, LLC, toll free at
800-645-3751.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of
these notes in any state or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any state or other
jurisdiction.
About American Campus Communities
American Campus Communities, Inc. is the largest owner, manager
and developer of high-quality student housing communities in the
United States. The company is a fully integrated, self-managed and
self-administered equity real estate investment trust (REIT) with
expertise in the design, finance, development, construction
management and operational management of student housing
properties. As of September 30, 2019, American Campus Communities
owned 168 student housing properties containing approximately
113,400 beds. Including its owned and third-party managed
properties, ACC's total managed portfolio consisted of 205
properties with approximately 140,300 beds.
Forward-Looking Statements
In addition to historical information, this press release
contains forward-looking statements under the applicable federal
securities law. These statements are based on management’s current
expectations and assumptions regarding markets in which American
Campus Communities, Inc. (the “Company”) operates, operational
strategies, anticipated events and trends, the economy, and other
future conditions. Forward-looking statements are not guarantees of
future performance and involve certain risks and uncertainties,
which are difficult to predict. For discussions of some risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by the forward-looking statements,
please refer to our filings with the Securities and Exchange
Commission, including our Annual Report on Form 10-K for the year
ended December 31, 2018 under the heading “Risk Factors” and under
the heading “Business - Forward-looking Statements” and subsequent
quarterly reports on Form 10-Q. We undertake no obligation to
publicly update any forward-looking statements, whether as a result
of new information, future events, or otherwise.
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Ryan Dennison Investor Relations (512) 732-1000
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