By Andrea Heisinger
New York, May 29 - Alexandria Real Estate Equities, Inc. tapped Wednesday's market for an upsized $500 million of 3.9% 10-year senior notes (Baa2/BBB-/) priced at 180 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The size was increased from $350 million.
Pricing was at 99.712 to yield 3.935%.
The notes will have a make-whole call at 30 bps over Treasuries until March 15, 2023 and then will be callable at par.
Bookrunners were J.P. Morgan Securities LLC, RBC Capital Markets LLC and RBS Securities Inc.
Proceeds will be used to prepay $150 million of a 2016 unsecured senior bank term loan and to reduce the balance of an unsecured senior line of credit to zero. The remainder will be held in cash and cash equivalents to fund near-term operations related to development and redevelopment projects, to fund near-term acquisitions and for general corporate purposes.
The notes are guaranteed by Alexandria Real Estate Equities LP.
Alexandria was last in the U.S. bond market with a $550 million sale of 4.6% 10-year bonds priced at 260 bps over Treasuries.
The real estate investment trust for life science labs is based in Pasadena, Calif.
| Issuer: | Alexandria Real Estate Equities, Inc.
|
| Guarantor: | Alexandria Real Estate Equities LP
|
| Issue: | Senior notes
|
| Amount: | $500 million, increased from $350 million
|
| Maturity: | June 15, 2023
|
| Bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets LLC, RBS Securities Inc.
|
| Senior co-managers: | BBVA Securities Inc., BNY Mellon Capital Markets, LLC, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC
|
| Co-managers: | Fifth Third Securities, Inc., HSBC Securities (USA) Inc., Huntington Investment Co., JMP Securities LLC, TD Securities (USA) LLC
|
| Coupon: | 3.9%
|
| Price: | 99.712
|
| Yield: | 3.935%
|
| Spread: | Treasuries plus 180 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until March 15, 2023, par call after
|
| Trade date: | May 29
|
| Settlement date: | June 7
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
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