PASADENA, Calif., May 29, 2013 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE:ARE) announced today that it has priced a public offering of $500,000,000 aggregate principal amount of 3.900% senior notes due 2023. J.P. Morgan Securities LLC, RBC Capital Markets, LLC, RBS Securities Inc., Barclays Capital Inc., Goldman, Sachs & Co., Mitsubishi UFJ Securities ( USA), Inc., PNC Capital Markets LLC, and Scotia Capital ( USA) Inc. are acting as joint book-running managers in connection with the public offering, BBVA Securities Inc., BNY Mellon Capital Markets, LLC, Credit Agricole Securities ( USA) Inc., and Credit Suisse Securities ( USA) LLC are acting as senior co-managers in connection with the public offering, and Fifth Third Securities, Inc., HSBC Securities ( USA) Inc., The Huntington Investment Company, JMP Securities LLC, and TD Securities ( USA) LLC are acting as co-managers in connection with the public offering.
The notes were priced at 99.712% of the principal amount with a yield to maturity of 3.935%. The notes will be unsecured obligations of the Company and fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P., a wholly owned subsidiary of the Company. The closing of the sale of the notes is expected to occur on or about June 7, 2013, subject to customary closing conditions.
The Company intends to use the net proceeds from this offering to prepay $150 million of the outstanding principal balance of $750 million of its 2016 unsecured senior bank term loan, to reduce the outstanding balance on its unsecured senior line of credit to zero, and to hold the remaining proceeds in cash and cash equivalents to fund near term opportunities related to development/redevelopment projects, to fund near term property acquisitions, and for general corporate purposes.
Alexandria Real Estate Equities, Inc., a self-administered and self-managed investment-grade REIT, is the largest and leading REIT focused principally on owning, operating, developing, redeveloping, and acquiring high-quality, sustainable real estate for the broad and diverse life science industry. Alexandria's client tenants span the life science industry, including renowned academic and medical institutions, multinational pharmaceutical companies, public and private biotechnology entities, U.S. government research agencies, medical device companies, industrial biotech companies, venture capital firms, and life science product and service companies. As of March 31, 2013, the Company had 173 properties aggregating approximately 16.7 million rentable square feet, composed of approximately 14.2 million rentable square feet of operating properties, approximately 2.1 million rentable square feet undergoing active development, and approximately 0.4 million rentable square feet undergoing active redevelopment.The notes will be offered pursuant to an effective registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Company's notes, nor shall there be any sale of the notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
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