Essex Property TrustInc. expects to record around $444.0 million of net proceeds from itsoperating partnership's issuanceof bonds, after deducting the underwriters' discounts and estimated offering expenses.
Essex Portfolio LP on April 11 issued 3.375% senior unsecurednotes, due in 2026, in the aggregate principal amount of $450 million, accordingto a same-day filing. Essex Property serves as the guarantor of the senior notes.
The operating partnership plans to use the net proceeds to repayindebtedness under its $1.0 billion unsecured line of credit facility and its $25.0million unsecured working capital line of credit facility, as well as for othergeneral corporate and working capital purposes.
Essex Portfolio offered the notes at 99.386% of the principalamount, with a 3.375% annual interest rate payable semiannually April 15 and Oct.15, starting Oct. 15, until April 15, 2026.
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 acted as the joint book-running managers of the issuance,as previously reported.
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.