EPR Properties Prices $400.0 Million of 3.600% Senior Notes due 2031

Rhea-AI Summary

EPR Properties (NYSE:EPR) has priced a public offering of $400 million in 3.600% Senior Notes due 2031, with closing expected on October 27, 2021. The company plans to use proceeds primarily to redeem its 5.250% Senior Notes due 2023 and for general corporate purposes, including ongoing acquisition projects. The offering involves no initial guarantees from subsidiaries. Major firms like J.P. Morgan and Citigroup are managing the offering. The notes will be issued under a prospectus supplement filed with the SEC.

Positive

• Pricing of $400 million in Senior Notes indicates strong market demand.
• Proceeds will be used to redeem higher-interest debt, potentially lowering overall financing costs.
• Funds will also support ongoing acquisition and build-to-suit projects, promoting growth.

Negative

• None.

KANSAS CITY, Mo.--(BUSINESS WIRE)-- EPR Properties (NYSE:EPR) (the “Company”) announced today that it has priced an underwritten public offering of $400.0 million of 3.600% Senior Notes due 2031. None of the Company’s subsidiaries will initially guarantee the notes. However, certain of the Company’s domestic subsidiaries will be obligated to guarantee the notes under certain circumstances. The offering is expected to close on October 27, 2021, subject to customary closing conditions.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays Capital Inc., RBC Capital Markets, LLC, BNP Paribas Securities Corp., Stifel, Nicolaus & Company, Incorporated and Truist Securities, Inc. are acting as joint book-running managers for the offering. U.S. Bancorp Investments, Inc. and UMB Financial Services, Inc. are acting as co-managers for the offering.

The Company intends to use the net proceeds from the offering principally to redeem all of the Company’s 5.250% Senior Notes due 2023, and the balance of net proceeds, if any, will be used for general corporate purposes, including funding the Company’s ongoing pipeline of acquisition and build-to-suit projects.

The notes will be issued pursuant to a prospectus supplement and an accompanying prospectus filed as part of an effective shelf registration statement filed with the Securities and Exchange Commission on Form S-3. A written prospectus and prospectus supplement relating to the offering, when available, may be obtained by contacting J.P. Morgan Securities LLC, at 383 Madison Avenue, New York, NY 10179, Attention: Investment Grade Syndicate Desk, or by calling (212) 834-4533; Citigroup Global Markets Inc., at c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by emailing prospectus@citi.com or calling (800) 831-9146; Barclays Capital Inc., at c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by emailing Barclaysprospectus@broadridge.com or by calling (888) 603-5847; or RBC Capital Markets, LLC, at 200 Vesey Street, 8th Floor, New York, NY 10281, Attn: Transaction Management, by calling (866) 375-6829 or by emailing rbcnyfixedincomeprospectus@rbccm.com. You may also get these documents free by visiting EDGAR on the SEC website at www.sec.gov.

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 the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration under the securities laws of any such state or jurisdiction.

About EPR Properties

EPR Properties is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues which create value by facilitating out-of-home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have nearly $6.5 billion in total investments across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

With the exception of historical information, certain statements contained or incorporated by reference herein may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), such as those pertaining to our acquisition or disposition of properties, our capital resources, future expenditures for development projects, and our results of operations. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of actual events. There is no assurance the events or circumstances reflected in the forward-looking statements will occur. You can identify forward-looking statements by use of words such as “will be,” “intend,” “continue,” “believe,” “may,” “expect,” “hope,” “anticipate,” “goal,” “forecast,” “pipeline,” “estimates,” “offers,” “plans,” “would,” “may” or other similar expressions or other comparable terms or discussions of strategy, plans or intentions contained or incorporated by reference herein. Forward-looking statements necessarily are dependent on assumptions, data or methods that may be incorrect or imprecise. These forward-looking statements represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Many of the factors that will determine these items are beyond our ability to control or predict. For further discussion of these factors see “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K and, to the extent applicable, our subsequent Quarterly Reports on Form 10-Q.

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date hereof or the date of any document incorporated by reference herein. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Except as required by law, we do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances after the date hereof.

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EPR Properties

Brian Moriarty (816) 472-1700

Vice President – Corporate Communications

brianm@eprkc.com

Source: EPR Properties

FAQ

What is the amount of the Senior Notes offering by EPR Properties?

EPR Properties is offering $400 million of Senior Notes.

What is the interest rate on the new Senior Notes due in 2031?

The interest rate on the new Senior Notes is 3.600%.

When is the expected closing date for the Senior Notes offering?

The expected closing date for the offering is October 27, 2021.

What does EPR Properties intend to do with the proceeds from the offering?

EPR Properties intends to redeem its 5.250% Senior Notes due 2023 and for general corporate purposes.