Colonial Realty begins tender offer for up to $175 million of notes in six series

By Angela McDaniels

Tacoma, Wash., April 6 - Colonial Properties Trust said its operating partnership, Colonial Realty LP, has begun a tender offer to purchase up to $175 million of its notes.

Notes eligible for participation are Colonial Realty' $210.7 million 4¾% senior notes due 2010, $20 million 8.8% medium-term notes due 2010 (Cusip 195891AJ4), $5 million 8.8% MTNs due 2010 (Cusip 195891AK1), $10 million 8.08% MTNs due 2010, $10 million 8.05% MTNs due 2010 and $95.7 million 4.8% senior notes due 2011.

The notes are listed in their order of acceptance priority, according to a company news release.

The company is offering $980 for each $1,000 principal amount of 4.8% notes and par for each of the remaining notes. In each case, the payout includes a $30 early tender premium for notes tendered by 5 p.m. ET on April 17.

Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be May 4.

The offer will expire at midnight ET on May 1.

If the offer is oversubscribed, tenders of notes will be subject to proration, and Colonial Realty will accept all tendered notes having a higher acceptance priority level before any tendered notes having a lower acceptance priority level are accepted.

Banc of America Securities LLC (888 292-0070 or 704 388-4603) is the lead dealer manager, and Wachovia Securities LLC is the co-dealer manager. Global Bondholder Services Corp. (866 470-4200 or 212 430-3774) is the information agent.

First-quarter repurchases

In Monday's news release, the company reported that it repurchased $96.9 million of Colonial Realty's outstanding unsecured senior notes during the first quarter of 2009.

Colonial Properties said the repurchases were made at an average discount to par of 27.1%, which represents a 12.6% yield to maturity.

The repurchases were made under the company's $500 million repurchase program, which runs through Dec. 31, 2009.

Colonial Properties is a multifamily real estate investment trust based in Birmingham, Ala.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.