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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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Dan Moynihan

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