Essex Property Trust Prices $150 Million of 4.000% Senior Notes Due 2029
March 19 2019 - 4:55PM
Business Wire
Essex Property Trust, Inc. (NYSE:ESS) announced today that its
operating partnership, Essex Portfolio, L.P. (the “Issuer”), priced
an underwritten public offering of $150 million aggregate principal
amount of 4.000% senior notes due 2029 (the “Notes”). The Notes are
being offered as additional notes under an indenture pursuant to
which the Issuer previously issued $350 million aggregate principal
amount of 4.000% senior notes due 2029 on February 11, 2019 (the
“Initial Notes”). The Notes will have substantially identical terms
as the Initial Notes, will be treated as a single series with the
Initial Notes and will have the same CUSIP number as the Initial
Notes. The Notes were priced at 100.717% of par value, plus accrued
interest from February 11, 2019 up to, but not including, the date
of delivery of the Notes, with a yield to maturity of 3.910%.
Interest is payable semiannually at an interest rate per annum of
4.000% on March 1 and September 1 of each year with the first
interest payment due September 1, 2019. The Notes mature on March
1, 2029. The Notes will be the senior unsecured obligations of the
Issuer and will be fully and unconditionally guaranteed by Essex
Property Trust, Inc. The Notes offering is expected to close on
March 26, 2019, subject to the satisfaction of certain closing
conditions.
The Issuer expects to use the net proceeds to repay indebtedness
under its unsecured line of credit facilities and for other general
corporate and working capital purposes.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., U.S.
Bancorp Investments, Inc., Wells Fargo Securities, LLC, Jefferies
LLC and MUFG Securities Americas Inc. served as joint book-running
managers. BB&T Capital Markets, a division of BB&T
Securities, LLC, BNP Paribas Securities Corp. and Mizuho Securities
USA LLC served as senior co-managers and Capital One Securities,
Inc., Regions Securities LLC and Scotia Capital (USA) Inc. served
as co-managers for the offering.
The Issuer and Essex Property Trust, Inc. have filed a
registration statement (including a preliminary prospectus
supplement and a prospectus) with the U.S. Securities and Exchange
Commission (“SEC”) for the offering to which this communication
relates. You may get these documents for free by searching the SEC
online database on the SEC website at http://www.sec.gov.
Alternatively, the Issuer, Essex Property Trust, Inc., any
underwriter or any dealer participating in the offering will
arrange to send you the prospectus supplement and prospectus if you
request it from (i) J.P. Morgan Securities LLC collect at
1-212-834-4533, (ii) Citigroup Global Markets Inc. toll free at
1-800-831-9146, (iii) U.S. Bancorp Investments, Inc. toll free at
1-877-558-2607 or (iv) Wells Fargo Securities, LLC toll free at
1-800-645-3751.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities nor will there be
any sale of these securities in any jurisdiction in which, or to
any person to whom, such offer, solicitation or sale would be
unlawful.
About Essex Property Trust,
Inc.
Essex Property Trust, Inc. (“Essex”), an S&P 500 company, is
a fully integrated real estate investment trust (“REIT”) that
acquires, develops, redevelops, and manages multifamily residential
properties in selected West Coast markets. Essex currently has
ownership interests in 245 apartment communities with an additional
6 properties in various stages of active development.
Safe Harbor Statement
This press release includes “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. Forward-looking statements are statements which are not
historical facts, including statements regarding our expectations,
estimates, assumptions, hopes, intentions, beliefs and strategies
regarding the future. Words such as “expects,” “assumes,”
“anticipates,” “may,” “will,” “intends,” “plans,” “believes,”
“seeks,” “estimates,” and variations of such words and similar
expressions are intended to identify such forward-looking
statements. Such forward-looking statements include, among other
things, statements related to the Notes offering and the expected
use of the net proceeds therefrom.
While our management believes the assumptions underlying its
forward-looking statements are reasonable, such forward-looking
statements involve known and unknown risks, uncertainties and other
factors, many of which are beyond our control, which could cause
the actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. We cannot
assure the future results or outcome of the matters described in
these statements; rather, these statements merely reflect our
current expectations of the approximate outcomes of the matters
discussed. Factors that might cause our actual results, performance
or achievements to differ materially from those expressed or
implied by these forward-looking statements include, but are not
limited to, the following: we may fail to achieve our business
objectives; there may be a downturn in general economic conditions,
the real estate industry, and the markets in which our communities
are located; changes in laws or regulations; the terms of any
refinancing may not be as favorable as the terms of existing
indebtedness; risks associated with the availability and terms of
financing, the use of debt to fund acquisitions and developments
and the ability to refinance indebtedness as it comes due; failure
to maintain credit ratings with the rating agencies; risks and
uncertainties affecting property acquisitions and developments,
increases in interest rates and volatility in the securities
markets; Essex’s ability to maintain its status as a REIT and those
risks, special considerations, and other factors referred to in our
most recent annual report on Form 10-K, quarterly reports on Form
10-Q, and the prospectus supplement and related prospectus for this
offering, as well as our other filings with the SEC that are
incorporated by reference in such prospectus supplement and
accompanying prospectus. All forward-looking statements are made as
of the date hereof, we assume no obligation to update or supplement
this information for any reason, and therefore, they may not
represent our estimates and assumptions after the date of this
press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20190319005898/en/
Rylan BurnsDirector of Investor Relations(650)
655-7800rburns@essex.com
Essex Property (NYSE:ESS)
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