Rexford greenshoe ups 2027, 2029 exchangeable notes to $1.15 billion

By Marisa Wong

Los Angeles, March 28 – The initial purchasers of Rexford Industrial Realty, LP’s recently priced exchangeable notes exercised their over-allotment options in full, bringing the total size of the two-tranche deal to $1.15 billion.

Rexford issued a total of $575 million of 4.375% exchangeable senior notes due 2027 and $575 million of 4.125% exchangeable senior notes due 2029, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The initial $1 billion of notes priced after the market close on Tuesday, as previously reported. The size of each tranche was $500 million. Both notes priced with an initial exchange premium of 30%.

Price talk for the 2027 tranche was for a coupon of 3.875% to 4.375% and an initial exchange premium of 30% to 35%. Price talk for the 2029 tranche was for a coupon of 3.875% to 4.375% and an initial exchange premium of 30% to 35%.

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

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.

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