Published on 7/29/2020 in the Prospect News Investment Grade Daily.
New Issue: Alexandria Real Estate prices $1 billion 1.875% notes due 2033 at 130 bps spread
By Cristal Cody
Tupelo, Miss., July 29 – Alexandria Real Estate Equities, Inc. sold $1 billion of 1.875% guaranteed senior notes due Feb. 1, 2033 (Baa1/BBB+) tighter than guidance at a spread of 130 basis points over Treasuries on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
Price guidance was in the Treasuries plus 135 bps area, plus or minus 2 bps.
The issue priced at 99.812 to yield 1.892%.
Book demand hit $3.8 billion.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and RBC Capital Markets LLC were the bookrunners.
The notes are guaranteed by Alexandria Real Estate Equities, LP.
Proceeds will be used to fund a cash tender offer for the company’s 3.9% senior notes due 2023, for pending and recently completed acquisitions and construction of highly leased development and redevelopment projects and general working capital and other corporate purposes, including the reduction of the outstanding balance on the company’s primary senior line of credit, the outstanding balance on its new senior line of credit and the outstanding debt under its commercial paper program.
Pasadena, Calif.-based Alexandria Real Estate Equities is a real estate investment trust focused on life science and technology campuses.
| Issuer: | Alexandria Real Estate Equities, Inc.
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| Guarantor: | Alexandria Real Estate Equities, LP
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| Amount: | $1 billion
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| Maturity: | Feb. 1, 2033
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| Description: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and RBC Capital Markets LLC
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| Senior co-managers: | Evercore Group LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc.
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| Co-managers: | Barclays, BBVA Securities Inc., BNP Paribas Securities Corp., Capital One Securities, Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Regions Securities LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
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| Coupon: | 1.875%
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| Price: | 99.812
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| Yield: | 1.892%
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| Spread: | Treasuries plus 130 bps
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| Call features: | Make-whole call at price equal to par and Treasuries plus 20 bps before Nov. 1, 2032; thereafter at par
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| Trade date: | July 29
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| Settlement date: | Aug. 5
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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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| Price guidance: | Treasuries plus 135 bps area, plus or minus 2 bps; initial talk at Treasuries plus 165 bps area
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