ROCKVILLE, Md., Dec. 7, 2017 /PRNewswire/ -- Federal Realty
Investment Trust (NYSE: FRT) today announced the pricing of its
public offering of $175 million
aggregate principal amount of 3.25% senior unsecured notes due
2027. The notes were offered at 99.404% of the principal amount
with a re-offer yield of 3.323%. Interest on the notes will be
payable on January 15 and
July 15 each year, beginning
January 15, 2018. The notes will have
the same terms and be of the same series as the notes that Federal
Realty issued on June 23, 2017 and,
upon consummation of this offering, Federal Realty will have a
total of $475 million of such notes
outstanding. The offering is expected to close on December 21, 2017, subject to the satisfaction of
customary closing conditions.
Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC,
Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Wells
Fargo Securities, LLC acted as joint book-running managers for the
offering. Citigroup Global Markets Inc., J.P. Morgan Securities
LLC, PNC Capital Markets LLC, Regions Securities LLC, SunTrust
Robinson Humphrey, Inc., TD Securities (USA) LLC, and U.S. Bancorp Investments, Inc.
acted as co-managers for the offering.
Federal Realty intends to use the net proceeds from this
offering to redeem all of its outstanding 5.90% Notes due 2020 and
for general corporate purposes, which may include, without
limitation, paying down the outstanding balance under its revolving
credit facility.
The offering is being made only by means of a prospectus
supplement and an effective registration statement (including a
prospectus), which have been filed with the SEC. A copy of the
prospectus supplement and accompanying prospectus for the offering
may be obtained by contacting (i) Deutsche Bank Securities Inc., 60
Wall Street, New York, NY 10005,
Attention: Prospectus Group, or by calling 1-800-503-4611 or by
email at prospectus.cpdg@db.com, (ii) Goldman Sachs & Co. LLC
by calling 1-866-471-2526, (iii) Merrill Lynch, Pierce, Fenner
& Smith Incorporated, NC1-004-03-43, 200 North College Street,
3rd Floor, Charlotte, NC
28255-0001, Attn: Prospectus Department, Email:
dg.prospectus_requests@baml.com, or (iv) Wells Fargo Securities,
LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS
Customer Service, or by calling 1-800-645-3751 or by email at
wfscustomerservice@wellsfargo.com. Alternatively, you may get these
documents for free by visiting the SEC's website at www.sec.gov.
About Federal Realty
Federal Realty is a recognized leader in the ownership,
operation and redevelopment of high-quality retail based properties
located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, our mission is
to deliver long term, sustainable growth through investing in
densely populated, affluent communities where retail demand exceeds
supply. Our expertise includes creating urban, mixed-use
neighborhoods like Santana Row in
San Jose, California, Pike &
Rose in North Bethesda, Maryland
and Assembly Row in Somerville,
Massachusetts. These unique and vibrant environments that
combine shopping, dining, living and working provide a destination
experience valued by their respective communities. Federal Realty's
104 properties include over 2,900 tenants, in approximately 24
million square feet, and over 2,000 residential units.
Federal Realty has paid quarterly dividends to its shareholders
continuously since its founding in 1962, and has increased its
dividend rate for 50 consecutive years, the longest record in the
REIT industry. Federal Realty shares are traded on the NYSE under
the symbol FRT.
Safe Harbor Language
Certain matters discussed within this press release may be
deemed to be forward-looking statements within the meaning of the
federal securities laws. Although Federal Realty believes the
expectations reflected in the forward-looking statements are based
on reasonable assumptions, it can give no assurance that its
expectations will be attained. These factors include, but are not
limited to, the risk factors described in our Annual Report on Form
10-K filed on February 13, 2017, and
include the following:
- risks that our tenants will not pay rent, may vacate early
or may file for bankruptcy or that we may be unable to renew leases
or re-let space at favorable rents as leases expire;
- risks that we may not be able to proceed with or obtain
necessary approvals for any redevelopment or renovation project,
and that completion of anticipated or ongoing property
redevelopments or renovation projects that we do pursue may cost
more, take more time to complete, or fail to perform as
expected;
- risks that we are investing a significant amount in
ground-up development projects that may not perform as planned, may
be dependent on third parties to deliver critical aspects of
certain projects, requires spending a substantial amount upfront in
infrastructure, and assumes receipt of public funding which has
been committed but not entirely funded;
- risks normally associated with the real estate industry,
including risks that occupancy levels at our properties and the
amount of rent that we receive from our properties may be lower
than expected, that new acquisitions may fail to perform as
expected, that competition for acquisitions could result in
increased prices for acquisitions, that costs associated with the
periodic maintenance and repair or renovation of space, insurance
and other operations may increase, that environmental issues may
develop at our properties and result in unanticipated costs, and,
because real estate is illiquid, that we may not be able to sell
properties when appropriate;
- risks that our growth will be limited if we cannot obtain
additional capital;
- risks associated with general economic conditions, including
local economic conditions in our geographic markets;
- risks of financing, such as our ability to consummate
additional financings or obtain replacement financing on terms
which are acceptable to us, our ability to meet existing financial
covenants and the limitations imposed on our operations by those
covenants, and the possibility of increases in interest rates that
would result in increased interest expense; and
- risks related to our status as a real estate investment
trust, commonly referred to as a REIT, for federal income tax
purposes, such as the existence of complex tax regulations relating
to our status as a REIT, the effect of future changes in REIT
requirements as a result of new legislation, and the adverse
consequences of the failure to qualify as a REIT.
Given these uncertainties, readers are cautioned not to place
undue reliance on any forward-looking statements that we make,
including those in this press release. Except as may be required by
law, we make no promise to update any of the forward-looking
statements as a result of new information, future events or
otherwise. You should carefully review the risks and risk factors
included in our Annual Report on Form 10-K filed with the
Securities and Exchange Commission on February 13, 2017.
Investor
Inquires:
|
Media
Inquiries:
|
Leah
Andress
|
Andrea
Simpson
|
Investor Relations
Associate
|
Vice President,
Marketing
|
301.998.8265
|
617.684.1511
|
landress@federalrealty.com
|
asimpson@federalrealty.com
|
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SOURCE Federal Realty Investment Trust