Colonial Realty increases oversubscribed tender offer for six notes series to $250 million

By Susanna Moon

Chicago, April 20 - Colonial Properties Trust said its operating partnership, Colonial Realty LP, will now purchase up to $250 million of notes in its tender offer, increased from $175 million.

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.

As of 5 p.m. ET on April 17, the early tender date, holders had tendered $265.6 million principal amount of the notes. The breakdown is as follows:

• $206.37 million of the 4¾% notes;

• None of the 8.8% notes (CUSIP-195896AJ4);

• $5 million of the 8.8% notes (CUSIP-195896AK1);

• None of the 8.08% notes;

• None of the 8.05% notes; and

• $54.25 million of the 4.8% notes.

As previously noted, 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 the early tender date.

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.

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

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