Alston & Bird acted as counsel to the underwriters in connection with an SEC-registered investment-grade $600 million notes offering issued by Essex Portfolio L.P., the operating partnership of Essex Property Trust Inc., a publicly traded real estate investment trust that invests in multifamily residential properties on the U.S. West Coast.
The offering, which consists of $300 million aggregate principal amount of 1.650% senior notes due 2031 and $300 million aggregate principal amount of 2.650% senior notes due 2050, priced on August 10, 2020 and is expected to close on August 24, 2020.
Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., Jefferies LLC, and MUFG Securities Americas Inc. served as joint book-running managers. BNP Paribas Securities Corp., Mizuho Securities USA LLC, Regions Securities LLC, and Truist Securities Inc. served as senior co-managers, and Barclays Capital Inc., Capital One Securities Inc., and Scotia Capital (USA) Inc. served as co-managers for the offering.
Essex Portfolio intends to use the net proceeds to repay upcoming debt maturities, including certain unsecured private placement notes and secured mortgage notes, to fund the redemption of $300 million aggregate principal amount (plus the make-whole amount and accrued and unpaid interest) of its outstanding 3.625% senior unsecured notes due August 2022, and for other general corporate and working capital purposes.
The notes offering is the 10th by Essex Portfolio for which Alston & Bird has represented the underwriters. In 2019 and 2020, the firm has advised the underwriters of seven SEC-registered investment-grade notes offerings by Essex Portfolio totaling $2.3 billion.
Advising the underwriters on the most recent offering was an Alston & Bird team led by partners Michael Kessler and Rosemarie Thurston and senior associate Ian Jones (REITs & Funds); partner Sarah Hess Mackenzie (Capital Markets & Securities); partner Shawna Tunnell and senior associate Stefanie Kavanagh (Federal & International Tax); senior associate David Rutherford (Finance); and associate Joel Jung (Financial Services & Products).