By Devika Patel and Cristal Cody
Knoxville, Tenn., Sept. 15 – UDR, Inc. priced an upsized $200 million add-on to its 3% notes due Aug. 15, 2031 (Baa1/BBB+) at 95 basis points over Treasuries on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 106.388 to yield 2.259% and are guaranteed by United Dominion Realty, LP.
Initial price talk for a $115 million offering was in the Treasuries plus 115 bps area.
The company previously sold $400 million of the 3% notes in a sale that priced on Aug. 6, 2019 and settled Aug. 15, 2019. The notes were priced at 99.71 to yield 3.029%, with a spread of Treasuries plus 130 bps.
The notes have a make-whole call at Treasuries plus 20 bps until May 15, 2031 and then a par call.
U.S. Bancorp Investments Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC, Regions Securities LLC, TD Securities (USA) LLC and Truist Securities, Inc. were the bookrunners.
Proceeds will be used for planned acquisitions and other investments, working capital, debt repayment under the company’s commercial paper program, unsecured revolving credit facility and working capital credit facility and general corporate purposes.
UDR is a real estate investment trust that owns and operates apartment communities.
| Issuer: | UDR, Inc.
|
| Guarantor: | United Dominion Realty, LP
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| Amount: | $200 million reopening
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| Description: | Senior notes
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| Maturity: | Aug. 15, 2031
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| Bookrunners: | U.S. Bancorp Investments Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC, Regions Securities LLC, TD Securities (USA) LLC and Truist Securities, Inc.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, PNC Capital Markets LLC and Samuel A. Ramirez & Co., Inc.
|
| Coupon: | 3%
|
| Price: | 106.388
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| Yield: | 2.259%
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| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call before May 15, 2031 at Treasuries plus 20 bps; thereafter at par
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| Trade date: | Sept. 15
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| Settlement date: | Sept. 24
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Distribution: | SEC registered
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| Guidance: | Treasuries plus 115 bps area
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| Total outstanding: | $600 million, including $400 million of notes issued Aug. 15, 2019
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| Cusip: | 90265EAR1
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