Essex Portfolio’s $600 Million Public Investment-Grade Notes Offering

Alston & Bird LLP acted as counsel to the underwriters on the deal.

Essex Property Trust, Inc. (NYSE:ESS) announced that its operating partnership, Essex Portfolio, L.P. (the “Issuer”), priced an underwritten public offering of $600.0 million aggregate principal amount senior notes, consisting of $300.0 million aggregate principal amount of 1.650% senior notes due 2031 (the “2031 Notes”) and $300.0 million aggregate principal amount of 2.650% senior notes due 2050 (the “2050 Notes” and together with the 2031 Notes, the “Notes”). The Notes offering is expected to close on August 24, 2020, subject to the satisfaction of certain closing conditions.

Wells Fargo Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., Jefferies LLC, and MUFG Securities Americas Inc. served as joint book-running managers. BNP Paribas Securities Corp., Mizuho Securities USA LLC, Regions Securities LLC, and Truist Securities Inc. served as senior co-managers, and Barclays Capital Inc., Capital One Securities Inc., and Scotia Capital (USA) Inc. served as co-managers for the offering.

Essex Portfolio intends to use the net proceeds to repay upcoming debt maturities, including certain unsecured private placement notes and secured mortgage notes, to fund the redemption of $300 million aggregate principal amount (plus the make-whole amount and accrued and unpaid interest) of its outstanding 3.625% senior unsecured notes due August 2022, and for other general corporate and working capital purposes.

The notes offering is the 10th by Essex Portfolio for which Alston & Bird has represented the underwriters. In 2019 and 2020, the firm has advised the underwriters of seven SEC-registered investment-grade notes offerings by Essex Portfolio totaling $2.3 billion.

Essex Property Trust Inc. is a publicly traded real estate investment trust that invests in multifamily residential properties on the U.S. West Coast.

Alston & Bird team was led by partners Michael Kessler (Picture) and Rosemarie Thurston and also included senior associate Ian Jones, partner Sarah Hess Mackenzie, partner Shawna Tunnell, senior associate Stefanie Kavanagh, senior associate David Rutherford and associate Joel Jung.

Involved fees earner: Joel Jung – Alston & Bird LLP; Ian Jones – Alston & Bird LLP; Stefanie Kavanagh – Alston & Bird LLP; Michael Kessler – Alston & Bird LLP; Sarah Hess Mackenzie – Alston & Bird LLP; David Rutherford – Alston & Bird LLP; Rosemarie Thurston – Alston & Bird LLP; Shawna Tunnell – Alston & Bird LLP;

Law Firms: Alston & Bird LLP;

Clients: Barclays Capital ; BNP Paribas; Capital One Securities; Citigroup Global Markets Ltd; J.P. Morgan Securities LLC; Jefferies Finance LLC; Mizuho Securities; MUFG Securities Americas Inc. ; Regions Securities LLC; Scotia Capital Inc.; Truist Securities Inc. ; U.S. Bancorp Investments; Wells Fargo Securities;

Author: Ambrogio Visconti