By Mary-Katherine Stinson
Lexington, Ky., July 5 –Apartment Income REIT LP issued three tranches of guaranteed senior notes totaling $400 million, according to an 8-K filing with the Securities and Exchange Commission.
The notes have a weighted average effective interest rate of 4.3%, inclusive of a previously placed treasury lock, and a weighted average maturity of eight years.
The purchasers in the private placement were sold $100 million of 4.58% five-year notes, $100 million of 4.77% seven-year notes and $200 million of 4.84% 10-year notes.
The notes can be redeemed early, in whole or in part, with a make-whole premium so long as the amount repurchased represents at least 5% of the aggregate principal amount of notes then outstanding.
Proceeds were used to repay borrowings under the company’s revolving credit facility.
The notes are guaranteed by Apartment Income REIT Corp.
Wells Fargo Securities, LLC and PNC Capital Markets LLC are the placement agents.
Denver, Colo.-based Apartment Income REIT is a real estate investment trust focused on the ownership and management of quality apartment communities located in the largest markets in the United States with 76 communities in 11 states and the District of Columbia.
| Issuer: | Apartment Income REIT LP
|
| Guarantor: | Apartment Income REIT Corp.
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| Amount: | $400 million
|
| Description: | Senior notes
|
| Placement agents: | Wells Fargo Securities, LLC and PNC Capital Markets LLC
|
| Call: | Make-whole call
|
| Change of control: | At par
|
| Distribution: | Private placement
|
|
|
| Five-year notes
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| Amount: | $100 million
|
| Maturity: | June 28, 2027
|
| Coupon: | 4.58%
|
|
|
| Seven-year notes
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| Amount: | $100 million
|
| Maturity: | June 28, 2029
|
| Coupon: | 4.77%
|
|
|
| 10-year notes
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| Amount: | $200 million
|
| Maturity: | June 28, 2032
|
| Coupon: | 4.84%
|
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