UDR Inc. priced a $400 million offering of 3.00% senior unsecured notes due Aug. 15, 2031.
The multifamily real estate investment trust priced the notes at 99.710% of the principal amount, plus accrued interest from Aug. 15, to yield 3.029% to maturity. Interest on the notes is payable semiannually every Feb. 15 and Aug. 15, starting in 2020.
The REIT also said it will redeem all $300 million of its outstanding 3.70% senior unsecured notes due Oct. 1, 2020.
Net proceeds will be used to repay debt, including the redemption of the 3.70% notes; to finance potential purchases; or for other general corporate purposes.
BofA Merrill Lynch, Wells Fargo Securities and J.P. Morgan are the joint book-running managers, while PNC Capital Markets LLC, Regions Securities LLC, US Bancorp, Citigroup, BB&T Capital Markets, TD Securities, Credit Suisse, Morgan Stanley, MUFG, BNY Mellon Capital Markets LLC and Ramirez & Co. Inc. are the co-managers for the offering, which is expected to close Aug. 15.