Essex Property Trust, Inc. (NYSE:ESS) has announced the pricing of $400 million aggregate principal amount of 5.375% senior notes due 2035. The notes were priced at 99.604% of par value with a yield to maturity of 5.425%. Interest is payable semiannually at an interest rate per annum of 5.375% on April 1 and October 1 of each year, with the first interest payment due on October 1, 2025. The notes will mature on April 1, 2035 and will be the senior unsecured obligations of the issuer and fully guaranteed by Essex.
The net proceeds of this offering will be used to repay upcoming debt maturities, including to fund the repayment of the issuer’s $500.0 million aggregate principal amount outstanding of 3.500% senior notes due April 2025, and for other general corporate and working capital purposes, which may include the funding of potential acquisition opportunities.
J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, BMO Capital Markets Corp., PNC Capital Markets LLC, and Truist Securities, Inc. served as joint book-running managers for the offering.
Essex currently has ownership interests in 256 apartment communities comprising over 62,000 apartment homes with an additional property in active development.
The notes offering is expected to close on February 18, 2025, subject to certain closing conditions.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor will there be any sale of these securities in any jurisdiction in which, or to any person to whom, such offer, solicitation or sale would be unlawful. As a result of these announcements, the company's shares have moved -2.0% on the market, and are now trading at a price of $292.14. If you want to know more, read the company's complete 8-K report here.
