BRIXMOR PROPERTY GROUP PRICES OFFERING OF SENIOR NOTES
Brixmor Property Group announced the pricing of a $400 million offering of 5.750% Senior Notes due 2035.
The notes will be issued at 99.222% of par value with semi-annual interest payments starting on August 15, 2024.
The offering is expected to close on May 28, 2024, subject to customary closing conditions.
Net proceeds are intended for general corporate purposes, including debt repayment.
Wells Fargo Securities, BofA Securities, RBC Capital Markets, and Scotia Capital are joint book-running managers for the offering.
- Offering of $400 million in senior notes provides significant capital.
- Interest rate of 5.750% is relatively attractive for long-term debt.
- Funds to be used for general corporate purposes, including debt repayment.
- Multiple reputable financial institutions involved as book-running managers.
- The offering has a clear timeline with expected closing on May 28, 2024.
- Notes issued at 99.222% of par value, slightly below full value.
- Additional debt increases overall financial leverage.
- Interest payments semi-annually, representing a recurring financial obligation.
Insights
The issuance of $400 million in senior notes by Brixmor Property Group Inc. is significant for several reasons. Firstly, the
From a financial stability perspective, using the proceeds for general corporate purposes, including debt repayment, is prudent. Reducing indebtedness can strengthen the company’s balance sheet and potentially lower interest expenses over time, which is beneficial for long-term financial health.
However, investors should consider the maturity date of 2035, which implies a long-term commitment. This could be a drawback if market conditions change unfavorably.
From a market standpoint, the joint book-running managers—Wells Fargo, BofA Securities, RBC Capital Markets and Scotia Capital—are reputable institutions, which adds credibility to the offering. Their involvement can provide assurance to investors about the robustness and due diligence associated with the issuance.
Additionally, the successful pricing of this offering could signal confidence in Brixmor's future cash flows and operational performance. It suggests that investors have a positive outlook on the company's ability to generate revenue and manage debt.
Potential investors should also evaluate the overall market conditions and interest rate environment when considering this offering, as rising rates could affect bond prices and yields.
Brixmor Property Group operates in the real estate sector, specifically focusing on retail properties. Issuing senior notes to manage debt and fund corporate activities can be seen as a strategic move to maintain and possibly expand their property portfolio. This can lead to increased rental income and asset value over time.
Investors should consider Brixmor's current property performance metrics, such as occupancy rates and rental income trends, to gauge the potential impact of this debt issuance on future earnings. A healthy property performance would suggest that the company can effectively utilize the funds raised to enhance its market position.
However, the retail real estate market can be volatile, with factors like consumer behavior and economic conditions playing a significant role. Thus, understanding these dynamics is important for long-term investment decisions.
The Operating Partnership intends to use the net proceeds from this offering for general corporate purposes, including repayment of indebtedness. Wells Fargo Securities, LLC, BofA Securities, Inc., RBC Capital Markets, LLC and Scotia Capital (
The Operating Partnership has filed an effective registration statement (including a prospectus supplement and accompanying base prospectus) with the Securities and Exchange Commission (the "SEC") relating to the offering to which this communication relates. Before making an investment in the Notes, potential investors should read the prospectus supplement, the accompanying prospectus and the other documents that the Company and the Operating Partnership have filed with the SEC for more complete information about us and the offering. Potential investors may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies may be obtained from: Wells Fargo Securities, LLC by calling toll-free at 1-800-645-3751 or emailing to wfscustomerservice@wellsfargo.com, BofA Securities, Inc. by calling toll-free at 1-800-294-1322, or by email at dg.prospectus_requests@bofa.com, RBC Capital Markets, LLC by calling (866) 375-6829 or Scotia Capital (
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 these Notes in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer or sale of the Notes will be made only by means of a prospectus supplement relating to the offering of the Notes and the accompanying prospectus.
ABOUT BRIXMOR PROPERTY GROUP
Brixmor (NYSE: BRX) is a real estate investment trust (REIT) that owns and operates a high-quality, national portfolio of open-air shopping centers. Its 359 retail centers comprise approximately 64 million square feet of prime retail space in established trade areas. The Company strives to own and operate shopping centers that reflect Brixmor's vision "to be the center of the communities we serve" and are home to a diverse mix of thriving national, regional and local retailers. Brixmor is a proud real estate partner to over 5,000 retailers including The TJX Companies, The Kroger Co., Publix Super Markets and Ross Stores.
SAFE HARBOR LANGUAGE
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under the sections entitled "Forward-Looking Statements" and "Risk Factors" in our Form 10-K for the year ended December 31, 2023, as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at https://www.sec.gov. These factors include (1) changes in national, regional, and local economies, due to global events such as international military conflicts, international trade disputes, a foreign debt crisis, foreign currency volatility, or due to domestic issues, such as government policies and regulations, tariffs, energy prices, market dynamics, general economic contractions, rising interest rates, inflation, unemployment, or limited growth in consumer income or spending; (2) local real estate market conditions, including an oversupply of space in, or a reduction in demand for, properties similar to those in our property portfolio; (3) competition from other available properties and e-commerce; (4) disruption and/or consolidation in the retail sector, the financial stability of our tenants, and the overall financial condition of large retailing companies, including their ability to pay rent and/or expense reimbursements that are due to us; (5) in the case of percentage rents, the sales volumes of our tenants; (6) increases in property operating expenses, including common area expenses, utilities, insurance, and real estate taxes, which are relatively inflexible and generally do not decrease if revenue or occupancy decrease; (7) increases in the costs to repair, renovate, and re-lease space; (8) earthquakes, wildfires, tornadoes, hurricanes, damage from rising sea levels due to climate change, other natural disasters, epidemics and/or pandemics, civil unrest, terrorist acts, or acts of war, any of which may result in uninsured or underinsured losses; and (9) changes in laws and governmental regulations, including those governing usage, zoning, the environment, and taxes. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our periodic filings. The forward-looking statements speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except to the extent otherwise required by law.
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SOURCE Brixmor Property Group Inc.
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