Essex Property Trust Prices $400 Million Senior Unsecured Notes Due May 1, 2024
09 April 2014 - 6:01AM
Marketwired
Essex Property Trust Prices $400 Million Senior Unsecured Notes Due
May 1, 2024
PALO ALTO, CA--(Marketwired - Apr 8, 2014) - Essex Property
Trust, Inc. (NYSE: ESS) today announced that its operating
partnership, Essex Portfolio, L.P., priced a private placement of
$400 million aggregate principal amount of senior unsecured notes
(the "Notes") at an interest rate per annum of 3.875%. The Notes
were offered to investors at a price of 99.234% of par value with a
yield to maturity of 3.968%. Interest is payable semiannually on
May 1 and November 1with the first interest payment due November 1,
2014. The Notes mature on May 1, 2024. The Notes offering is
expected to close on April 15, 2014, subject to certain closing
conditions.
The operating partnership expects to use net proceeds to
refinance existing senior unsecured indebtedness and for general
corporate purposes.
The Notes are being offered to qualified institutional buyers
pursuant to Rule 144A under the Securities Act of 1933, as amended
(the "Securities Act"), and in offshore transactions pursuant to
Regulation S under the Securities Act. In connection with the
offering of the Notes, Essex Property Trust, Inc. and Essex
Portfolio, L.P., expect to enter into a registration rights
agreement pursuant to which they will agree to file a registration
statement with respect to an offer to exchange the Notes for
identical new notes registered under the Securities Act (or, under
certain circumstances, a shelf registration statement covering
resales of the Notes).
The Notes have not been registered under the Securities Act and,
unless so registered, may not be offered or sold in the United
States absent registration or an applicable exemption from, or in a
transaction not subject to, the registration requirements of the
Securities Act and other applicable securities laws.
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, any security and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale would be unlawful.
About Essex Property
Trust
Essex Property Trust, Inc., an S&P 500 company, is a fully
integrated real estate investment trust (REIT) that acquires,
develops, redevelops, and manages multifamily residential
properties in selected West Coast markets. Essex currently has
ownership interests in 233 apartment communities with an additional
15 properties in various stages of active development. Additional
information about Essex can be found on the Company's web site at
www.essexpropertytrust.com.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements,
including statements related to the private placement and the
expected use of the net proceeds therefrom, which are based on
current expectations, forecasts and assumptions that involve risks
and uncertainties that could cause actual outcomes and results to
differ materially. These risks and uncertainties include, without
limitation: general risks affecting the real estate industry;
adverse economic or real estate developments in the target markets
of Essex Property Trust, Inc. (the "Company"); risks associated
with the availability and terms of financing, the use of debt to
fund acquisitions and developments, and the ability to refinance
indebtedness as it comes due; failure to maintain credit ratings
with the rating agencies; risks and uncertainties affecting
property acquisitions and developments, increases in interest
rates, and volatility in the securities markets; and other risks
detailed in the Company's filings with the Securities and Exchange
Commission (SEC). All forward-looking statements are made as of
today, and the Company assumes no obligation to update this
information. For more details relating to risk and uncertainties
that could cause actual results to differ materially from those
anticipated in our forward-looking statements, and risks to our
business in general, please refer to our SEC filings, including the
Company's most recent Report on Form 10-K for the year ended
December 31, 2013.
Contact Barb Pak
Director of Investor Relations (650) 849-3700
Essex Property (NYSE:ESS)
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