8-KMaterial AgreementsRegulation FDExhibits & Filings

ESSEX PROPERTY TRUST, INC. 8-K Report, Material Agreement (Mar 31, 2014)

Filed March 31, 2014For Securities:ESS

Summary

Essex Property Trust, Inc. (ESS) announced on March 25, 2014, that it entered into a Terms Agreement with Citigroup Global Markets Inc. for a public offering of 450,000 shares of common stock. The offering, which closed on March 31, 2014, sold shares to Citigroup as the sole underwriter at a price of $166.90 per share, raising approximately $75 million in net proceeds. The company intends to contribute these proceeds to its Operating Partnership, Essex Portfolio, L.P., for general corporate purposes. This may include debt repayment, working capital, and external investments. This equity issuance was conducted under an existing Equity Distribution Agreement with Citigroup, originally dated March 29, 2013, and was registered under the Securities Act of 1933. The filing also disclosed other "At-the-Market" (ATM) sales activity during the first quarter of 2014.

Key Highlights

  • 1Public offering of 450,000 shares of common stock to Citigroup as sole underwriter.
  • 2Gross proceeds from the offering amounted to approximately $75 million.
  • 3Net proceeds are intended for general corporate purposes, including potential debt repayment, working capital, and investments.
  • 4The offering was conducted under an existing Equity Distribution Agreement with Citigroup.
  • 5Shares were sold at $166.90 per share, with the offering closing on March 31, 2014.
  • 6The company also reported 'At-the-Market' (ATM) sales of 510,655 shares for approximately $82.9 million during Q1 2014.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report the entry into a material agreement, specifically the Terms Agreement with Citigroup Global Markets Inc. for a public offering of common stock.

Essex Property Trust raised approximately $75 million in net proceeds from the sale of 450,000 shares of common stock in this offering.

The company intends to contribute the net proceeds to its Operating Partnership, Essex Portfolio, L.P., for general corporate purposes. This may include repaying indebtedness, funding working capital, and engaging in external investment activities.

Yes, the filing also disclosed 'At-the-Market' (ATM) sales activity. For the three months ended March 31, 2014, Essex Property Trust sold 510,655 shares of common stock through other equity distribution agreements for approximately $82.9 million.