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Wednesday, 04 September 2019

Alexandria Real Estate Sells 10-Year Bonds with Record-Setting 2.5 Percent Coupon

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Commercial Real Estate Direct Staff Report

Alexandria Real Estate Equities Inc. yesterday priced a $400 million issue of senior unsecured notes with a 10-year term and a coupon of 2.5 percent - the lowest coupon for such a transaction since at least 2006.

The notes, rated Baa1 by Moody's and BBB+ by S&P, were priced at 99.842 percent of par, to yield 2.767 percent, or 130 basis points more than Treasurys of the same duration. Those Treasurys closed yesterday yielding a mere 1.47 percent, their lowest level of the year.

The Pasadena, Calif., REIT, which invests in office and laboratory buildings, initially had planned to sell only $350 million of 10-year notes. It also sold $200 million of 30-year notes - a first of its kind issue for the company as it sought to take advantage of rock-bottom interest rates. Those...


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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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Additional Info

  • Syndicate to Realpoint: No
  • Subject: REIT Unsecured Debt (UNSEC), REITS -general (REITS)
  • Company: Alexandria Real Estate Equities Inc.
  • Private: Yes
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Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds