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BRE Properties, Inc. (“BRE Properties” or the “Company”) (NYSE:BRE) today announced the pricing of its underwritten registered public offering of $300,000,000 aggregate principal amount of senior notes due 2023 (the “Notes Offering”). Interest on the notes is payable semiannually in arrears on January 15 and July 15, beginning January 15, 2013; the notes will mature on January 15, 2023. The notes were issued at 99.281% of par value, with a coupon of 3.375%. The Notes Offering was made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission on November 5, 2010. The Notes Offering is expected to close on August 13, 2012, subject to certain closing conditions.
The Company intends to use the net proceeds of the Notes Offering to repay borrowings under its $750 million unsecured credit facility incurred to fund development activities as well as for general corporate purposes. The Company intends to use any remaining net proceeds for general corporate purposes, which may include redemption or repurchase of equity or debt securities, including the Company’s outstanding 6.75% Series D Cumulative Redeemable Preferred Stock, repayment of debt, funding of development activities and financing of acquisitions. Pending application of the net proceeds as described above, the Company may invest the net proceeds in short-term money-market securities.
J.P. Morgan Securities LLC, RBS Securities Inc., Wells Fargo Securities, LLC, Deutsche Bank Securities Inc. and UBS Securities LLC acted as joint book-running managers in the Notes Offering. A copy of the prospectus supplement and prospectus relating to these securities may be obtained, when available, by contacting J.P. Morgan Securities LLC at 383 Madison Avenue, New York, New York 10179, Attn: High Grade Syndicate Desk, 3rd Floor (telephone (212) 834-4533); RBS Securities Inc. at 600 Washington Boulevard, Stamford, Connecticut 06901, Attention: Debt Capital Markets Syndicate (telephone (866) 884-2071); or Wells Fargo Securities, LLC at 1525 West W.T. Harris Blvd., NC0675, Charlotte, North Carolina 28262, Attn: Capital Markets Client Support (telephone (800) 326-5897) or (email:
This news release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy with respect to any securities. The Notes Offering is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction or is otherwise prohibited.