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Essex Property unit plans debt issuance

An Essex PropertyTrust Inc. unit plans to issue an undisclosed amount of senior notesthat will be fully and unconditionally guaranteed by the company.

The notes will be senior unsecured obligations of issuer EssexPortfolio LP, according to an April 4 filing, and will rank equally in right ofpayment with all of its other senior unsecured indebtedness.

Fitch Ratings announced the same day that it assigned a BBB+rating to Essex Portfolio's 10-year issuance.

The operating partnership plans to use the net proceeds to repayindebtedness under its $1.0 billion unsecured line of credit facility and $25.0million unsecured working capital line of credit facility. The net proceeds mayalso be used for other working capital and general corporate purposes, which mayinclude the purchase, development or redevelopment of apartment communities or otherproperties, or making other investments. Pending such uses, the net proceeds maybe invested in short-term securities.

Essex Portfolio may partially or fully redeem the notes in itssole discretion, for cash, at any time or from time to time.

Wells Fargo Securities, Citigroup, J.P. Morgan, MUFG, US Bancorpand Jefferies are serving as joint book-running managers for the debt issuance,with U.S. Bank NA as trustee for the notes.