American Campus Communities Inc.'s operating partnership priced a $400 million offering of 3.625% senior unsecured notes due Nov. 15, 2027, for roughly $395 million in net proceeds.
American Campus Communities Operating Partnership LP issued the 10-year notes at 99.912% of par value. Interest on the notes is payable semiannually every May 15 and Nov. 15, starting May 15, 2018.
The operating partnership expects to use the net proceeds to repay the outstanding balance of its revolving credit facility and to fund the company's student housing portfolio deal with Core Spaces and DRW Real Estate Investments, among other uses.
Deutsche Bank Securities, J.P. Morgan and Wells Fargo Securities are the joint book-running managers for the offering, which is set to close Oct. 10.