By Rebecca Melvin
Princeton, N.J., Oct. 25 - Essex Portfolio LP, operating partnership of Essex Property Trust Inc., priced $190 million 20-year exchangeable senior notes at par to yield 3.625% with an initial conversion premium of 18.15%. The notes were reoffered to the marketplace at 98, according to a syndicate source.
The notes priced at the cheap end of talk for the coupon, which was 3.375% to 3.625%. The conversion price was fixed at 103.25.
UBS Investment Bank and Bear Stearns & Co. were joint bookrunners.
The Rule 144A notes will be fully and unconditionally guaranteed by Essex, a real estate investment trust.
The senior unsecured obligations are non-callable for five years and have puts in years five, 10 and 15.
There is a $35 million greenshoe.
Essex Portfolio intends to use a portion of the net proceeds to repay some of its outstanding debt, including prepayment penalties estimated at $2 million; for the buyback of up to $25 million of stock; and for general corporate purposes.
Essex is a Palo Alto, Calif.-based investor in multifamily apartment communities.
| Issuer: | Essex Portfolio LP, operating partnership of Essex Property Trust Inc.
|
| Issue: | Exchangeable senior notes
|
| Bookrunners: | UBS Investment Bank and Bear Stearns & Co.
|
| Amount: | $190 million
|
| Greenshoe: | $35 million
|
| Maturity: | Nov. 1, 2025
|
| Coupon: | 3.625%
|
| Price: | Par
|
| Reoffered price: | 98
|
| Yield: | 3.625%
|
| Conversion premium: | 18.15%
|
| Conversion price: | $103.25
|
| Conversion ratio: | 9.6852
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call: | Nov. 4, 2010 onwards at par
|
| Puts: | In years 5, 10 and 15
|
| Contingent conversion: | Yes, with a 125% trigger
|
| Pricing date: | Oct. 24, after the close
|
| Settlement date: | Oct. 28
|
| Stock price: | $87.39
|
| Distribution: | Rule 144A
|
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