Entertainment Properties Trust (NYSE:EPR) (the "Company") announced today that it has priced an underwritten public offering of $350 million of 5.75% Senior Notes due 2022 (the "notes"). The notes will be guaranteed by certain of the Company's subsidiaries. The offering is expected to close on August 8, 2012, subject to customary closing conditions.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Barclays Capital Inc. served as joint book-running managers for the offering.
The Company intends to use the net proceeds from the offering for the repayment of approximately $166.3 million of its mortgage debt secured by certain of the Company's rental properties, the repayment of the outstanding principal balance of its unsecured revolving credit facility and the remaining amount of proceeds for general business purposes, which may include funding the acquisition, development or financing of properties or the repayment of debt. The mortgage debt to be repaid with the net proceeds from the offering had an outstanding principal balance of approximately $168.7 million at June 30, 2012. Pending application of any portion of the net proceeds to such uses, the Company may invest such proceeds in interest-bearing securities which are consistent with the Company's qualification as a real estate investment trust.
The notes will be issued pursuant to a prospectus supplement and an accompanying prospectus filed as part of an effective shelf registration statement filed with the Securities and Exchange Commission on Form S-3. A written prospectus and prospectus supplement relating to this offering, when available, may be obtained from Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220 (telephone: (800) 831-9146); J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179, Attention: Investment Grade Syndicate Desk (telephone: (212) 834-4533); or Barclays Capital Inc. c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 (telephone: (888) 603-5847 or via email:
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This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration under the securities laws of any such state or jurisdiction.