Essex Property Trust Announces $200M Senior Notes Offering

By Tamara Parker • Thursday, August 22 07:58 • Permanent Link

Essex Property Trust, Inc. has announced the pricing of a $200 million add-on offering of its senior notes due 2034 with a reoffer yield of 5.110%. This offering is an addition to the $350 million of 5.500% senior notes due 2034 previously issued by the company. The new notes were priced at 102.871% of par value and will bear an interest rate per annum of 5.500%, payable semiannually.

The net proceeds from this offering will be used by the company to repay upcoming debt maturities, including to fund a portion of the repayment of the issuer’s $500.0 million aggregate principal amount outstanding of 3.500% senior notes due April 2025 upon maturity thereof, and for other general corporate and working capital purposes.

The joint book-running managers for the offering are Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, U.S. Bancorp Investments, Inc., Scotia Capital (USA) Inc., and TD Securities (USA) LLC. Additionally, BofA Securities, Inc., BMO Capital Markets Corp., Mizuho Securities USA LLC, Truist Securities, Inc., Regions Securities LLC, and Samuel A. Ramirez & Company, Inc. are also involved in the offering as co-managers.

Essex Property Trust, Inc. is an S&P 500 company and a fully integrated real estate investment trust that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. As of now, Essex currently has ownership interests in 255 apartment communities comprising over 62,000 apartment homes. Today the company's shares have moved 0.7% to a price of $289.21. For more information, read the company's full 8-K submission here.

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