Published on 7/14/2020 in the Prospect News Investment Grade Daily.
New Issue: UDR prices $400 million of 2.1% guaranteed notes due 2032 at 150 bps spread
By Cristal Cody
Tupelo, Miss., July 14 – UDR, Inc. priced $400 million of 2.1% guaranteed medium-term notes due Aug. 1, 2032 (Baa1/BBB+) on Tuesday at 99.894 to yield 2.11%, or a spread of Treasuries plus 150 basis points, according to an FWP filing with the Securities and Exchange Commission.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, BofA Securities, Inc. and U.S. Bancorp Investments Inc. were the bookrunners.
The notes are fully and unconditionally guaranteed by United Dominion Realty, LP.
Proceeds will be used to purchase all of the company's 3.75% medium-term notes due 2024 in a tender offer and to repay other outstanding debt, including a portion of its debt maturing in 2023, for potential acquisitions or for other general corporate purposes.
UDR is a Denver-based real estate investment trust that owns and operates apartment communities.
| Issuer: | UDR, Inc.
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| Guarantor: | United Dominion Realty, LP
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| Amount: | $400 million
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| Description: | Series A medium-term notes
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| Maturity: | Aug. 1, 2032
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| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, BofA Securities, Inc. and U.S. Bancorp Investments Inc.
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| Co-managers: | PNC Capital Markets LLC, Regions Securities LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, BNY Mellon Capital Markets, LLC, MUFG and Samuel A. Ramirez & Company, Inc.
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| Coupon: | 2.1%
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| Price: | 99.894
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| Yield: | 2.11%
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| Spread: | Treasuries plus 150 bps
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| Trade date: | July 14
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| Settlement date: | July 21
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| Call features: | Make-whole call before May 1, 2032 at Treasuries plus 25 bps; thereafter at par
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Distribution: | SEC registered
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