8-KOther Events

ESSEX PROPERTY TRUST, INC. 8-K Report (Sep 24, 2003)

Filed September 24, 2003For Securities:ESS

Summary

Essex Property Trust, Inc. (ESS) filed an 8-K report on September 24, 2003, detailing the completion of a sale of 1,000,000 shares of its 7.8125% Series F Cumulative Redeemable Preferred Stock. The sale, initially reported on September 18, 2003, generated approximately $24.1 million in net proceeds after commissions and expenses. These proceeds are earmarked for the redemption of Essex Portfolio, L.P.'s 9.125% Series C Cumulative Redeemable Preferred Units, which become redeemable on November 24, 2003. In the interim, prior to the redemption date, ESS intends to use the net proceeds to reduce its outstanding debt under its $185 million credit facility, which had $147.7 million drawn as of September 23, 2003. This strategic move aims to manage outstanding debt and prepare for the upcoming preferred unit redemption.

Key Highlights

  • 1Completion of sale for 1,000,000 shares of 7.8125% Series F Cumulative Redeemable Preferred Stock.
  • 2Net proceeds from the sale estimated at approximately $24,076,500.
  • 3Proceeds are intended for the redemption of 9.125% Series C Cumulative Redeemable Preferred Units of Essex Portfolio, L.P.
  • 4The Series C Units become redeemable on November 24, 2003, at $50.00 per unit plus distributions.
  • 5In the interim, net proceeds will be used to repay existing indebtedness under the $185 million line of credit.
  • 6As of September 23, 2003, $147.7 million was outstanding under the line of credit.
  • 7The company's Chief Financial Officer, Michael J. Schall, signed the report.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report the completion of the sale of 1,000,000 shares of Essex Property Trust's Series F Cumulative Redeemable Preferred Stock and to outline the intended use of the net proceeds.

The net proceeds are intended for the redemption of the 9.125% Series C Cumulative Redeemable Preferred Units of Essex Portfolio, L.P., which are redeemable on November 24, 2003. Prior to this redemption, the funds will be used to reduce outstanding debt under the company's $185 million credit facility.

The transaction generated approximately $24.1 million in net proceeds, which will be used to manage debt and fund a future redemption of preferred units. This indicates a proactive approach to capital management and debt servicing.

As of September 23, 2003, Essex Property Trust had $147.7 million outstanding under its $185 million line of credit. The proceeds from the preferred stock sale will be used to repay a portion of this indebtedness temporarily, before being used for the Series C Unit redemption.