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ATLANTA-Post Apartment Homes LP, the operating subsidiary of Post Properties Inc., is offering to buy back for cash all of its outstanding $150 million 8 1/8% investment notes due in 2005. The publicly traded, 32-year-old, locally based developer says in a prepared statement it is doing the deal to reduce its total debt load maturing in fiscal 2005.

Post says it will also pay accrued and unpaid interest on the notes. The buy-back offer expires at 5 p.m., Oct. 5. Wachovia Securities and Merrill Lynch & Co. are the dealer managers for the offer. Post filed its buy-back offer with the Securities and Exchange Commission.

The purchase price for each $1,000 principal amount of notes will be “the price resulting from a yield to maturity on the notes, equal to the sum of a fixed spread of 20 basis points, and the yield based on the bid price on the 1 ¼% US Treasury Notes due May 31, 2005,” according to the Post statement.

If favorable market conditions exist at the offer’s settlement date, Post may decide to finance all or a portion of the purchase price of the notes with the proceeds of an offering of new notes, the company says. However, if favorable market conditions are not in place, Post “expects to borrow funds under its unsecured revolving credit facility to pay the purchase price for the notes, plus accrued and unpaid interest,” according to the Post statement.

“Under no circumstances shall the offer by Post Apartment Homes to purchase the outstanding notes constitute or be construed as a public offer of securities,” the company emphasizes. “The offer is being made solely by the Offer to Purchase and the Letter of Transmittal.

Nationwide, Post Properties owns about 24,700 apartment homes in 65 communities, including 666 apartment homes held in three unconsolidated joint ventures.

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