UDR to sell add-on to 3.2% notes due 2030 via two bookrunners

By Devika Patel

Knoxville, Tenn., Feb. 19 – UDR, Inc. expects to price an add-on to its 3.2% series A medium-term senior notes (Baa1/BBB+) due Jan. 15, 2030, according to a 424B5 filed with the Securities and Exchange Commission.

The notes are guaranteed by United Dominion Realty, LP.

The company originally sold $300 million of the 3.2% notes in a sale that priced on June 25, 2019 and settled July 2, 2019. The notes were priced at 99.662 to yield 3.238%, with a spread of Treasuries plus 125 basis points.

The company tapped the issue again on Oct. 2, 2019 when it priced $100 million more of the notes in a sale that settled on Oct. 11, 2019. The notes were priced at 103.319 to yield 2.817%, with a spread of Treasuries plus 123 bps.

The total outstanding now stands at $400 million.

The 3.2% notes have a make-whole call at Treasuries plus 20 bps until Oct. 15, 2029 and then a par call.

Wells Fargo Securities LLC and Citigroup Global Markets Inc. are the bookrunners.

Proceeds will be used to repay debt and for potential acquisitions and other general corporate purposes.

UDR is a real estate investment trust that owns and operates apartment communities.

© 2015 Prospect News.
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