8-KOther EventsExhibits & Filings

EQUITY RESIDENTIAL 8-K Report, Corporate Update (Feb 2, 2015)

Filed February 2, 2015For Securities:EQR

Summary

Equity Residential (EQR), through its operating subsidiary ERP Operating Limited Partnership, announced on February 2, 2015, the establishment of a commercial paper program. This program allows the Operating Partnership to issue unsecured commercial paper notes up to a maximum aggregate amount of $500 million. The proceeds from these notes will be used for general corporate purposes. This move provides Equity Residential with a flexible and potentially cost-effective source of short-term financing. The commercial paper notes will rank equally with other unsecured senior indebtedness of the Operating Partnership. Investors should note that these securities are offered under an exemption from registration and are not registered under the Securities Act of 1933, meaning they are typically purchased by sophisticated investors.

Key Highlights

  • 1ERP Operating Limited Partnership established a new commercial paper program on February 2, 2015.
  • 2The program allows for the issuance of unsecured commercial paper notes up to $500 million.
  • 3Proceeds from the issuance will be used for general corporate purposes.
  • 4The commercial paper notes will rank pari passu (equally) with other unsecured senior indebtedness of the Operating Partnership.
  • 5The program utilizes an exemption from registration under Section 4(a)(2) of the Securities Act of 1933.
  • 6The announcement was accompanied by a press release, filed as an exhibit.

Frequently Asked Questions

Establishing a commercial paper program provides Equity Residential, through its operating partnership, with access to a flexible source of short-term funding. This can be a more efficient way to manage working capital needs or fund immediate opportunities compared to traditional bank loans.

Under this program, ERP Operating Limited Partnership can issue unsecured commercial paper notes up to a maximum aggregate amount of $500 million outstanding at any time.

No, the commercial paper notes have not been registered under the Securities Act of 1933. They are offered under an exemption from registration (Section 4(a)(2)), which typically means they are sold to a limited number of sophisticated investors and are not publicly traded in the same way as registered securities.

The commercial paper notes will rank pari passu, meaning they are on equal footing with all other unsecured senior indebtedness of ERP Operating Limited Partnership.