8-KOther EventsExhibits & Filings

ESSEX PROPERTY TRUST, INC. 8-K Report, Corporate Update (Apr 11, 2013)

Filed April 11, 2013For Securities:ESS

Summary

This Form 8-K filing by Essex Property Trust, Inc. (ESS) and its operating partnership, Essex Portfolio, L.P., announces their entry into an underwriting agreement on April 8, 2013, for a public offering of $300 million in aggregate principal amount of 3.25% Senior Notes due 2023. These notes will be fully and unconditionally guaranteed by the parent company, Essex Property Trust, Inc. The primary purpose of this debt issuance is to generate proceeds that will be used to repay existing indebtedness under the company's unsecured line of credit and working capital line of credit. Additionally, the funds may be used for other general corporate and working capital needs. This move indicates a strategic refinancing or deleveraging effort by the company.

Key Highlights

  • 1Essex Property Trust, Inc. and its operating partnership are issuing $300 million of 3.25% Senior Notes due 2023.
  • 2The Senior Notes are fully and unconditionally guaranteed by Essex Property Trust, Inc.
  • 3The underwriting agreement was entered into on April 8, 2013.
  • 4The offering is being managed by Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC.
  • 5Net proceeds from the offering will be used to repay existing indebtedness under unsecured credit facilities.
  • 6Funds may also be used for general corporate and working capital purposes.
  • 7The filing includes the Underwriting Agreement as an exhibit.

Frequently Asked Questions

The primary purpose of the $300 million Senior Notes offering is to repay existing indebtedness under Essex Property Trust's unsecured line of credit and unsecured working capital line of credit. This is likely part of a strategy to manage debt and improve its capital structure.

The new notes will carry a coupon rate of 3.25% and are due in 2023.

The Senior Notes will be fully and unconditionally guaranteed by the parent company, Essex Property Trust, Inc.

The net proceeds will be used to repay outstanding balances on the company's unsecured credit facilities and for other general corporate and working capital purposes.