EPR Properties (NYSE:EPR) (the "Company") announced today that it has priced an underwritten public offering of $275 million of 5.250% Senior Notes due 2023. The notes will be guaranteed by certain of the Company's subsidiaries. The offering is expected to close on June 18, 2013, subject to customary closing conditions.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and RBC Capital Markets, LLC are serving as joint book-running managers for the offering.
The Company intends to use the net proceeds from the offering (i) to repay approximately $90.9 million Canadian dollars ("CAD") ($89.5 million U.S. based on a conversion rate of 0.9843 as of March 31, 2013) of outstanding fixed rate mortgage debt secured by the Company's four entertainment retail centers located in Ontario, Canada, (ii) to repay approximately $56.7 million of outstanding fixed rate mortgage debt secured by the Company's entertainment retail center located in New Rochelle, New York, (iii) to pay costs associated with the early repayment of such mortgage debt, (iv) to repay the outstanding principal balance of the Company's unsecured revolving credit facility and (v) for general business purposes, which may include funding the acquisition, development or financing of properties, including the potential acquisition of a company that indirectly owns 11 theatre properties as described in the prospectus supplement. Pending application of any portion of the net proceeds to such uses, the Company may invest such proceeds in interest-bearing accounts and short-term 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 J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179, Attention: Investment Grade Syndicate Desk (telephone: (212) 834-4355); Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220 (telephone: (800) 831-9146); or RBC Capital Markets, LLC, Three World Financial Center, 200 Vesey Street, 8th Floor, New York, New York 10281, Attention: Debt Capital Markets (telephone: (866) 375-6829). You may also get these documents free by visiting EDGAR on the SEC website at www.sec.gov.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.
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