BETHESDA, MD—Federal Realty Investment Trust has priced a $250 million public debt offering of 4.50% senior unsecured notes that are due Dec. 1, 2044. The notes were offered at 98.86% of the principal amount with a yield to maturity of 4.57%. The offering will close on Nov. 14, 2014.
The REIT plans to use the net proceeds to redeem its outstanding 5.65% notes due 2016 as well as repay the mortgage loan on its East Bay Bridge property, located in Emeryville, CA. East Bay Bridge is a 430,000-square foot grocery-anchored power center anchored by Home Depot, Target, Pak N' Save, Michaels and more.
Wells Fargo Securities, LLC, Deutsche Bank Securities Inc., and Merrill Lynch, Pierce, Fenner & Smith Inc. acted as joint book-running managers. Regions Securities LLC, SunTrust Robinson Humphrey, Inc., PNC Capital Markets LLC, Capital One Securities, Inc., and TD Securities (USA) LLC were the co-managers.
Federal Realty ended the quarter with a solid cash position, it reported during its earnings call last week.
During the quarter, it raised $50 million under its ATM at an average price of $124.71. It also raised an additional $10 million from the sale of Pleasant Shops, a retail center in Weymouth, MA, that it had owned jointly with ING Clarion.
All told, the REIT ended the quarter with approximately $24 million in cash and only $11 million drawn under its $600 million revolver.
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