8-KFinancial EventsOther EventsExhibits & Filings

ESSEX PROPERTY TRUST, INC. 8-K Report, Financial Obligation (Jul 5, 2011)

Filed July 5, 2011For Securities:ESS

Summary

Essex Property Trust, Inc. (ESS), through its operating partnership Essex Portfolio, L.P., has successfully completed a private placement of $115 million in senior guaranteed notes. This issuance comprises $40 million of 4.50% Senior Guaranteed Notes, Series A, maturing in September 2017, and $75 million of 4.92% Senior Guaranteed Notes, Series B, maturing in December 2019. The notes are unsecured obligations of the operating partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. and its subsidiaries, providing investors with a credit enhancement. This strategic move likely aims to secure long-term financing and potentially optimize the company's capital structure.

Key Highlights

  • 1Essex Property Trust, Inc. (ESS) completed a private placement of $115 million in senior guaranteed notes on June 30, 2011.
  • 2The issuance includes $40 million in Series A Notes (4.50% interest, due 2017) and $75 million in Series B Notes (4.92% interest, due 2019).
  • 3The Notes are unsecured obligations of Essex Portfolio, L.P. (the Operating Partnership).
  • 4Essex Property Trust, Inc. and its subsidiaries provide full and unconditional guarantees for the Notes.
  • 5The issuance was conducted under a Note Purchase Agreement dated June 30, 2011.
  • 6The Operating Partnership retains the option to prepay the Notes, subject to a 'Make-Whole Amount' provision.
  • 7The filing includes the Note Purchase Agreement and a press release as exhibits.

Frequently Asked Questions

Essex Property Trust, Inc., through its operating partnership, raised a total of $115 million by issuing two series of senior guaranteed notes.

The Series A Notes total $40 million with a 4.50% interest rate, maturing on September 30, 2017. The Series B Notes total $75 million with a 4.92% interest rate, maturing on December 30, 2019.

No, the Notes are unsecured obligations of the Operating Partnership. However, they are fully and unconditionally guaranteed by Essex Property Trust, Inc. and various subsidiaries, which provides a level of security to the noteholders.

Yes, the Operating Partnership has the option to prepay all or part of the Notes at any time. However, this prepayment is subject to a 'Make-Whole Amount,' which is defined as the excess of the discounted value of remaining payments over the prepaid amount.