Alexandria Real Estate Equities, Inc. Announces Public Offering of Senior Notes

Rhea-AI Summary

On February 2, 2023, Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced the commencement of an underwritten public offering of two tranches of senior notes. The offering, led by Goldman Sachs, BofA Securities, Citigroup, and RBC Capital Markets, aims to raise funds for general corporate purposes, including debt repayment and property acquisitions. Proceeds from the first tranche will fund eligible green projects with Gold or Platinum LEED certification. The second tranche proceeds will also support working capital and debt reduction. The notes will be unsecured and fully guaranteed by a subsidiary of the Company.

Positive

• Proceeds from the first tranche will fund green projects with Gold or Platinum LEED certification.
• Funding will potentially reduce outstanding debts and improve corporate financial health.

Negative

• Offering may lead to shareholder dilution.
• Market conditions could affect the success of the public offering.

PASADENA, Calif., Feb. 2, 2023 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. ("Alexandria" or the "Company") (NYSE: ARE) today announced that it is commencing an underwritten public offering, subject to market conditions, of two tranches of senior notes (the "notes"). Goldman Sachs & Co. LLC, BofA Securities, Inc., Citigroup Global Markets Inc. and RBC Capital Markets, LLC will act as joint book-running managers in connection with the public offering. The notes will be unsecured obligations of the Company and fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P., an indirectly 100% owned subsidiary of the Company.

The Company expects the net proceeds from the first tranche in this offering will be used initially for general corporate purposes, which may include the reduction of the outstanding balance, if any, on the Company's unsecured senior line of credit, the reduction of the outstanding indebtedness, if any, under the Company's commercial paper program, the repayment of other debt and the selective development, redevelopment or acquisition of properties. In addition, following the initial allocation of the net proceeds described above, the Company intends to allocate an amount equal to the net proceeds from the first tranche to fund, in whole or in part, recently completed and future eligible green projects, which are defined as certain development, redevelopment or tenant improvement projects that have received or are expected to receive Gold or Platinum LEED certification, including the development and redevelopment of such projects. The net proceeds from the second tranche in this offering will be used for general working capital and other general corporate purposes, which may include the reduction of the outstanding balance, if any, on the Company's unsecured senior line of credit, the reduction of the outstanding indebtedness, if any, under the Company's commercial paper program, the repayment of other debt and the selective development, redevelopment or acquisition of properties.

The notes are being 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.

Copies of the prospectus supplement relating to this offering, when available, may be obtained by contacting: Goldman Sachs & Co. LLC, Attn: Prospectus Department, at 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, by fax at (212) 902-9316 or by email at prospectus-ny@ny.email.gs.com; BofA Securities, Inc., NC1-004-03-43, Attn: Prospectus Department, at 200 North College Street, 3rd Floor, Charlotte, NC 28255-0001 or by email at dg.prospectus_requests@bofa.com; Citigroup Global Markets Inc., Attn: Broadridge Financial Solutions, at 1155 Long Island Avenue, Edgewood, NY 11717, by toll-free telephone at (800) 831-9146 or by email at prospectus@citi.com; or RBC Capital Markets, LLC, Attn: Syndicate Operations, at 200 Vesey Street, 8th Floor, New York, NY 10281, by toll-free telephone at (866) 375-6829, by fax at (212) 428-6308 or by email at rbcnyfixedincomeprospectus@rbccm.com.

Alexandria, an S&P 500^® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since its founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech and technology campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland and Research Triangle. 

This press release includes "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. Such forward-looking statements include, without limitation, statements regarding the Company's offering of the notes and its intended use of the proceeds. These forward-looking statements are based on the Company's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by the Company's forward-looking statements as a result of a variety of factors, including, without limitation, the risks and uncertainties detailed in its filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update this information. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in the Company's forward-looking statements, and risks and uncertainties to the Company's business in general, please refer to the Company's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q.

CONTACT: Sara Kabakoff, Vice President – Strategic Communications, (626) 788-5578, skabakoff@are.com

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SOURCE Alexandria Real Estate Equities, Inc.

FAQ

What is the purpose of Alexandria's public offering of senior notes?

The public offering aims to raise funds for general corporate purposes, debt repayment, and the development of green projects.

How will Alexandria use the proceeds from the senior notes offering?

Proceeds will be utilized for reducing debts, acquiring properties, and funding projects eligible for Gold or Platinum LEED certification.

Who are the joint book-running managers for the senior notes offering by Alexandria?

The joint book-running managers are Goldman Sachs, BofA Securities, Citigroup, and RBC Capital Markets.

What are the risks associated with Alexandria's senior notes offering?

Risks include potential shareholder dilution and the impact of market conditions on the success of the offering.

When was the announcement of Alexandria's public offering made?

The announcement was made on February 2, 2023.