GERMANTOWN, Tenn., Aug. 3, 2020 /PRNewswire/ -- Mid-America
Apartment Communities, Inc., ("MAA") (NYSE: MAA) today announced
that its operating partnership, Mid-America Apartments, L.P.
("MAALP") priced a $450 million
offering of MAALP's 1.700% senior unsecured notes due February 15, 2031 (the "Notes") under its
existing shelf registration statement. The Notes were priced at
99.465% of the principal amount. The closing of the
offering is expected to occur on August 12,
2020, subject to the satisfaction of customary closing
conditions.
MAALP intends to use net proceeds from the offering to repay
borrowings outstanding under its unsecured commercial paper
program, with any remaining net proceeds to be used for general
corporate purposes, which may include, without limitation, the
repayment of other debt and the acquisition, development and
redevelopment of apartment communities.
Wells Fargo Securities, LLC, Citigroup Global Markets Inc.,
Jefferies LLC, J.P. Morgan Securities LLC and U.S. Bancorp
Investments, Inc. were the joint book-running managers for the
offering.
Bass, Berry & Sims PLC is serving as legal counsel to MAALP,
and Sidley Austin LLP is serving as legal counsel to the
underwriters.
A registration statement relating to these securities has been
filed with the Securities and Exchange Commission and has become
effective. The offering of these securities will be made only by
means of a prospectus supplement and accompanying prospectus.
Copies of these documents may be obtained from: Wells Fargo
Securities, LLC, 608 2nd Avenue South, Suite 1000,
Minneapolis, MN 55402, Attention:
WFS Customer Service, or by calling: 1-800-645-3751, or
by emailing: wfscustomerservice@wellsfargo.com; Citigroup Global
Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, NY 11717, or by
calling 1-800-831-9146, or by emailing:
prospectus@citi.com; Jefferies LLC, 520 Madison Avenue,
New York, NY 10022, Attention:
Investment Grade Syndicate Desk, or by calling: 1-877-877-0696;
J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY 10179, Attention: Investment
Grade Syndicate Desk, or by calling: 1-212-834-4533; and U.S.
Bancorp Investments, Inc., 214 N. Tryon St., 26th Floor,
Charlotte, NC 28202, Attention:
Credit Fixed Income, or by calling: 1-877-558-2607.
Alternatively, investors may obtain these documents, when
available, for free by visiting EDGAR on the Securities and
Exchange Commission's website at www.sec.gov.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy the Notes, nor shall there be any
sale of the Notes in any jurisdiction in which such offer,
solicitation, or sale would be unlawful under the securities laws
of any such jurisdiction.
About MAA
MAA is a self-administered real estate investment trust ("REIT")
and member of the S&P 500. MAA has ownership interest in
apartment communities throughout the Southeast, Southwest and
Mid-Atlantic regions of the U.S. and is focused on delivering
strong, full-cycle investment performance for shareholders.
Forward-Looking Statements
Sections of this release contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, with respect to our expectations for future periods.
Forward-looking statements do not discuss historical fact, but
instead include statements related to expectations, projections,
intentions or other items related to the future. Such
forward-looking statements include, without limitation, statements
related to the closing of the Notes offering and the intended use
of proceeds. Words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates," "forecasts," "projects,"
"assumes," "will," "may," "could," "should," "target," "outlook,"
"guidance" and variations of such words and similar expressions are
intended to identify such forward-looking statements. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors, as described below, which may
cause our actual results, performance or achievements to be
materially different from the results of operations, financial
conditions or plans expressed or implied by such forward-looking
statements. Although we believe that the assumptions underlying the
forward-looking statements contained herein are reasonable, any of
the assumptions could be inaccurate, and therefore such
forward-looking statements included in this release may not prove
to be accurate. In light of the significant uncertainties inherent
in the forward-looking statements included herein, the inclusion of
such information should not be regarded as a representation by us
or any other person that the results or conditions described in
such statements or our objectives and plans will be achieved.
The following factors, among others, could cause our actual
results, performance or achievements to differ materially from
those expressed or implied in the forward-looking statements:
- COVID-19 pandemic and measures taken or that may be taken by
federal, state and local governmental authorities to combat the
spread of the disease;
- inability to generate sufficient cash flows due to unfavorable
economic and market conditions, changes in supply and/or demand,
competition, uninsured losses, changes in tax and housing laws, or
other factors;
- exposure, as a multifamily focused REIT, to risks inherent in
investments in a single industry and sector;
- adverse changes in real estate markets, including, but not
limited to, the extent of future demand for multifamily units in
our significant markets, barriers of entry into new markets which
we may seek to enter in the future, limitations on our ability to
increase rental rates, competition, our ability to identify and
consummate attractive acquisitions or development projects on
favorable terms, our ability to consummate any planned dispositions
in a timely manner on acceptable terms, and our ability to reinvest
sale proceeds in a manner that generates favorable returns;
- failure of new acquisitions to achieve anticipated results or
be efficiently integrated;
- failure of development communities to be completed within
budget and on a timely basis, if at all, to lease-up as anticipated
or to achieve anticipated results;
- unexpected capital needs;
- changes in operating costs, including real estate taxes,
utilities and insurance costs;
- inability to obtain appropriate insurance coverage at
reasonable rates, or at all, or losses from catastrophes in excess
of our insurance coverage;
- ability to obtain financing at favorable rates, if at all, and
refinance existing debt as it matures;
- level and volatility of interest or capitalization rates or
capital market conditions;
- price volatility, dislocations and liquidity disruptions in the
financial markets and the resulting impact on financing;
- the effect of any rating agency actions on the cost and
availability of new debt financing;
- the effect of the phase-out of the London Interbank Offered
Rate, or LIBOR, as a variable rate debt benchmark by the end of
2021 and the transition to a different benchmark interest
rate;
- significant decline in market value of real estate serving as
collateral for mortgage obligations;
- significant change in the mortgage financing market that would
cause single-family housing, either as an owned or rental product,
to become a more significant competitive product;
- our ability to continue to satisfy complex rules in order to
maintain our status as a REIT for federal income tax purposes, the
ability of MAALP to satisfy the rules to maintain its status as a
partnership for federal income tax purposes, the ability of our
taxable REIT subsidiaries to maintain their status as such for
federal income tax purposes, and our ability and the ability of our
subsidiaries to operate effectively within the limitations imposed
by these rules;
- inability to attract and retain qualified personnel;
- cyber liability or potential liability for breaches of our or
our service providers' information technology systems, or business
operations disruptions;
- potential liability for environmental contamination;
- adverse legislative or regulatory development;
- extreme weather, natural disasters, disease outbreak and public
health events;
- legal proceedings relating to various issues, which, among
other things, could result in a class action lawsuit;
- compliance costs associated with numerous federal, state and
local laws and regulations, including those costs associated with
laws requiring access for disabled persons; and
- other risks identified in this release and in reports we file
with the SEC or in other documents that we publicly
disseminate.
New factors may also emerge from time to time that could have a
material adverse effect on our business. Except as required
by law, we undertake no obligation to publicly update or revise
forward-looking statements contained in this release to reflect
events, circumstances or changes in expectations after the date of
this release.
28784064.1
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SOURCE MAA