UDR Inc. priced an offering of $100 million of 3.200% senior unsecured notes due Jan. 15, 2030, and $300 million of 3.100% senior unsecured notes due Nov. 1, 2034.
The 2030 notes were priced at 103.319% of the principal amount, while the 2034 notes were priced at 99.557% of the principal amount, plus applicable interest in each case. Interest on the 2030 notes is payable semiannually every Jan. 15 and July 15, with the first interest payment due Jan. 15, 2020, while interest on the 2034 notes is payable semiannually every May 1 and Nov. 1, with the first interest payment due May 1, 2020.
The company expects to allocate the net proceeds from the sale of the 2034 notes to fund eligible green projects. It expects to initially use the net offering proceeds to redeem all $400 million of its outstanding 4.625% senior unsecured notes due Jan. 10, 2022.
Wells Fargo Securities, BofA Merrill Lynch, Jefferies and US Bancorp are the joint book-running managers, while BB&T Capital Markets, Citigroup, J.P. Morgan, Regions Securities LLC, TD Securities, BNY Mellon Capital Markets LLC, Credit Suisse, Morgan Stanley, MUFG and Ramirez & Co. Inc. are the co-managers for the offering, which is expected to close Oct. 11.
