Rexford to price $1 billion of exchangeable notes in two parts

By Abigail W. Adams

Portland, Me., March 25 – Rexford Industrial Realty Inc. plans to price a $1 billion two-tranche offering of exchangeable notes (Baa2/BBB+/BBB+) after the market close on Tuesday, according to a market source.

The offering consists of a $500 million three-year tranche with price talk for a coupon of 3.875% to 4.375% and an initial conversion premium of 30% to 35%.

There is also a $500 million tranche of five-year notes that are talked with a coupon of 3.875% to 4.375% and an initial conversion premium of 30% to 35%.

BofA Securities Inc. is lead left bookrunner for the Rule 144A offering.

Both tranches carry a greenshoe of $75 million.

The three-year tranche is non-callable; the five-year tranche is non-callable until May 20, 2027 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

Proceeds will be used for general corporate purposes, including future acquisitions and redevelopment activity.

Rexford is a Los Angeles-based real estate investment trust focused on industrial properties.

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