By Wendy Van Sickle
Columbus, Ohio, Jan. 14 – American Assets Trust, Inc.’s operating partnership, American Assets Trust, LP, priced $500 million of 3.375% 10-year senior notes (Baa3/BBB-/BBB) on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 98.935 to yield 3.502%, or a spread of Treasuries plus 237.5 basis points.
Wells Fargo Securities LLC, BofA Securities Inc. and Morgan Stanley & Co. LLC are the joint bookrunners for the offering.
About $150 million of the proceeds will be used for the development of the La Jolla Commons III property in San Diego; $155 million for the repayment of the company’s senior guaranteed notes due Oct. 31, 2021; and $100 million for the repayment of the outstanding borrowings under company’s revolving credit facility. The remainder will be used for working capital and general corporate purposes.
American Assets is a San Diego-based real estate investment trust focused on retail, office and residential properties, primarily in Southern California, Northern California, Oregon, Washington and Hawaii.
| Issuer: | American Assets Trust, LP
|
| Guarantor: | American Assets Trust, Inc.
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| Amount: | $500 million
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| Description: | Senior notes
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| Maturity: | Feb. 1, 2031
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| Bookrunners: | Wells Fargo Securities LLC, BofA Securities Inc. and Morgan Stanley & Co. LLC
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| Co-managers: | Mizuho Securities USA LLC, PNC Capital Markets LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.375%
|
| Price: | 98.935
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| Yield: | 3.502%
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| Spread: | Treasuries plus 237.5 bps
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| Call: | Make-whole at Treasuries plus 40 bps until Nov. 1, 2030, then a par call
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| Trade date: | Jan. 14
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| Settlement date: | Jan. 26
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
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| Fitch: BBB
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| Distribution: | SEC registered
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