Chicago, March 26 – Rexford Industrial Realty, LP priced $1 billion of exchangeable notes in a two-tranche offering (Baa2/BBB+/BBB+) after the market close on Tuesday, according to a press release.
The size of each tranche was $500 million. Both notes priced with an initial conversion premium of 30%.
The first tranche priced as 4.375% senior notes due 2027.
Price talk was for a coupon of 3.875% to 4.375% and an initial conversion premium of 30% to 35%.
The second part priced as 4.125% senior notes due 2029.
Price talk was for 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.
Rexford Industrial Realty Inc. is the guarantor.
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.
Abigail W. Adams contributed to this story.
| Issuer: | Rexford Industrial Realty, LP
|
| Guarantor: | Rexford Industrial Realty Inc.
|
| Issue: | Exchangeable senior notes
|
| Bookrunners: | BofA Securities Inc.
|
| Trade date: | March 26
|
| Settlement date: | March 28
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: REXR
|
| Stock price: | $48.95 on March 26
|
| Market capitalization: | $10.53 billion
|
|
|
| 2027 notes
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | March 15, 2027
|
| Coupon: | 4.375%
|
| Price: | Par
|
| Yield: | 4.375%
|
| Exchange rate: | 15.7146
|
| Exchange price: | $63.64
|
| Conversion premium: | 30%
|
| Call features: | Non-callable
|
| Price talk: | Coupon of 3.875% to 4.375% and initial conversion premium of 30% to 35%
|
|
|
| 2029 notes
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| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | March 15, 2029
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| Coupon: | 4.125%
|
| Price: | Par
|
| Yield: | 4.125%
|
| Exchange rate: | 15.7146
|
| Exchange price: | $63.64
|
| Conversion premium: | 30%
|
| Call features: | Starting on March 20, 2026, subject to 130% hurdle
|
| Price talk: | Coupon of 3.875% to 4.375% and initial conversion premium of 30% to 35%
|
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