Regency Centers eyes add-on sale to Jan. 18’s 3.6%, 4.4% senior notes

By Devika Patel

Knoxville, Tenn., June 27 – Regency Centers LP (Baa1/BBB+/BBB+) is eyeing an additional sale of its 3.6% senior notes due Feb. 1, 2027 and 4.4% senior notes due Feb. 1, 2047, according to a 424B5 filed with the Securities and Exchange Commission.

The 2027 notes were priced on Jan. 18 in a $350 million offering at 99.741 to yield 3.631%, a spread of 130 bps over Treasuries.

The 2047 notes were also priced on Jan. 18 in a $300 million offering sold at 99.11 to yield 4.454%, a spread of 150 bps over Treasuries.

The 2027 notes have a make-whole call at Treasuries plus 20 bps until Nov. 1, 2026, then a par call.

The 2047 notes have a make-whole call at 25 bps over Treasuries until Aug. 1, 2046 and are callable afterward at par.

Wells Fargo Securities LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. are the bookrunners.

Proceeds are expected to be used to redeem preferred units, retire approximately $112 million of loans secured by mortgages, reduce the outstanding balance on the company’s line of credit and for general corporate purposes.

The notes will be guaranteed by Regency Centers Corp., a Jacksonville, Fla., real estate investment trust that owns retail shopping centers.

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