Essex Property TrustInc.'s operating partnership priced its senior unsecured notes in the aggregate principalamount of $450 million.
The company said April 4 that the notes were offered at a priceto investors of 99.386% of par value, with a 3.448% yield to maturity. They willbear a 3.375% annual interest rate, payable semiannually April 15 and Oct. 15, startingOct. 15, 2016.
The notes, due April 15, 2026, will be senior unsecured obligationsof issuer Essex Portfolio LP. The company will provide full and unconditional guaranteefor the notes.
Essex said the offering is set to close April 11, pending certainclosing conditions.
Essex Portfolio will use net proceeds to repay indebtedness underits unsecured line of credit facilities, as well as to support other general corporateand working capital functions.
Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P.Morgan Securities LLC, Mitsubishi UFJ Securities (USA) Inc., U.S. Bancorp InvestmentsInc. and Jefferies LLC were the offering's joint book-running managers.
Barclays Capital Inc.; BB&T Capital Markets, a division ofBB&T Securities LLC; BNP Paribas Securities Corp.; Deutsche Bank SecuritiesInc.; and UBS Securities LLC were the senior co-managers, while BMO Capital MarketsCorp., Capital One Securities Inc., Mizuho Securities USA Inc. and Regions SecuritiesLLC were the co-managers.