By Andrea Heisinger
New York, Feb. 22 - Alexandria Real Estate Equities Inc. sold a slightly upsized $550 million of 4.6% 10-year senior notes on Wednesday to yield Treasuries plus 260 basis points, a source close to the trade said.
The deal was priced at the tight end of guidance in the 265 bps area.
The notes (Baa2/BBB-/) were sold at 99.915 to yield 4.61%.
The securities have a make-whole call at Treasuries plus 40 bps until Jan. 1, 2022 and can be redeemed after that date at par.
Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the active bookrunners. Passive bookrunners were Mitsubishi UFJ Securities (USA) Inc., RBC Capital Markets LLC, RBS Securities Inc. and Scotia Capital (USA) Inc.
Senior co-managers were Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Morgan Keegan & Co.
BB&T Capital Markets, BNY Mellon Capital Markets LLC, JMP Securities LLC, Keefe, Bruyette & Woods Inc., PNC Capital Markets LLC, SMBC Nikko Capital Markets Ltd. and SunTrust Robinson Humphrey Inc. were junior co-managers.
Proceeds will be used to prepay the outstanding balance of $250 million in a 2012 unsecured term loan under an unsecured credit facility and to reduce borrowings under an unsecured line of credit.
The notes are guaranteed by Alexandria Real Estate Equities LP.
The real estate investment trust for properties with life science laboratory space is based in Pasadena, Calif.
| Issuer: | Alexandria Real Estate Equities Inc.
|
| Guarantor: | Alexandria Real Estate Equities LP
|
| Issue: | Senior notes
|
| Amount: | $550 million, increased from $500 million
|
| Maturity: | April 1, 2022
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC (active), Mitsubishi UFJ Securities (USA) Inc., RBC Capital Markets LLC, RBS Securities Inc., Scotia Capital (USA) Inc. (passive)
|
| Senior co-managers: | Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Morgan Keegan & Co.
|
| Junior co-managers: | BB&T Capital Markets, BNY Mellon Capital Markets LLC, JMP Securities LLC, Keefe, Bruyette & Woods Inc., PNC Capital Markets LLC, SMBC Nikko Capital Markets Ltd., SunTrust Robinson Humphrey Inc.
|
| Coupon: | 4.6%
|
| Price: | 99.915
|
| Yield: | 4.61%
|
| Spread: | Treasuries plus 260 bps
|
| Call: | Make-whole at Treasuries plus 40 bps until Jan. 1, 2022, after at par
|
| Trade date: | Feb. 22
|
| Settlement date: | Feb. 29
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Price talk: | 265 bps area
|
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