Alexandria Real Estate Equities priced a $1 billion public offering of 7.250% series A fixed-to-fixed reset rate junior subordinated notes due 2057, marking a fresh round of long-dated borrowing for the life science REIT.
The notes were priced at 100% of principal, with the company locking in a 7.250% coupon through Feb. 15, 2032. After that date, the rate will reset every five years to the five-year U.S. Treasury rate plus 2.889%, subject to a 7.250% floor.
The offering comes with a sizable maturity runway: the notes do not come due until 2057. Alexandria said the securities will be junior subordinated unsecured obligations of the company and will be fully and unconditionally guaranteed on a subordinated unsecured basis by its operating partnership.
The company expects to close the sale on or about Aug. 21, 2026.
Alexandria said it plans to use the proceeds for general corporate purposes, including working capital, paying down any balance on its unsecured senior line of credit, reducing any commercial paper borrowings, repaying other debt, and funding selective development, redevelopment or acquisition activity. As a result of these announcements, the company's shares have moved -0.58% on the market, and are now trading at a price of $48.14. Check out the company's full 8-K submission here.
