Summary
Equity Residential (EQR) filed a Form 8-K on December 8, 2011, to report two significant financial activities. First, the company filed a prospectus supplement to continue its existing "at the market" equity offering program (ATM Program). This filing was primarily to update the registration statement and prospectus before the current one expires on December 16, 2011. The ATM Program remains unchanged, with 10,000,000 common shares registered, and importantly, no shares have been sold under this program since January 13, 2011. Second, the report disclosed that ERP Operating Limited Partnership, a subsidiary of Equity Residential, entered into an agreement to sell $1 billion in aggregate principal amount of 4.625% notes due December 15, 2021. This debt issuance is expected to close on December 12, 2011. These actions indicate the company is maintaining its equity issuance flexibility while also actively managing its debt structure.
Key Highlights
- 1Equity Residential filed a prospectus supplement to continue its "at the market" (ATM) equity offering program.
- 2The ATM Program filing is to replace an expiring registration statement and prospectus.
- 3The ATM Program continues to be registered for 10,000,000 common shares.
- 4No shares have been sold under the ATM Program since January 13, 2011.
- 5ERP Operating Limited Partnership, a subsidiary, agreed to sell $1 billion of 4.625% notes due 2021.
- 6The closing of the $1 billion note offering is expected on December 12, 2011.
- 7The filing includes opinions and consents from DLA Piper LLP (US) regarding certain matters.