Independence Realty Trust Announces Private Placement of $150 Million of Unsecured Notes
Independence Realty Trust (NYSE: IRT) has announced a $150 million private placement of unsecured notes. The placement consists of two tranches: $75 million due in 2031 at 5.32% interest, and $75 million due in 2034 at 5.53% interest. The funding is expected in Q4 2024, subject to closing conditions. IRT plans to use the proceeds to repay secured mortgage debt maturing in 2025 and reduce borrowings on its revolving credit facility. CFO Jim Sebra stated that this transaction demonstrates investor confidence in IRT's strategy and balance sheet, and will strengthen the company's financial position while remaining leverage and earnings neutral. BofA Securities led the placement, with Citigroup as co-placement agent.
Independence Realty Trust (NYSE: IRT) ha annunciato un collocamento privato di $150 milioni di note non garantite. Il collocamento è suddiviso in due tranche: $75 milioni in scadenza nel 2031 con un tasso d'interesse del 5,32% e $75 milioni in scadenza nel 2034 con un tasso d'interesse del 5,53%. Il finanziamento è previsto per il Q4 2024, soggetto a condizioni di chiusura. IRT prevede di utilizzare i proventi per rimborsare debiti ipotecari garantiti in scadenza nel 2025 e ridurre i prestiti sulla sua linea di credito rotativa. Il CFO Jim Sebra ha dichiarato che questa transazione dimostra la fiducia degli investitori nella strategia e nel bilancio di IRT, e rafforzerà la posizione finanziaria dell'azienda mantenendo un equilibrio tra indebitamento e utili. BofA Securities ha guidato il collocamento, con Citigroup come co-agente di collocamento.
Independence Realty Trust (NYSE: IRT) ha anunciado un colocación privada de $150 millones de notas no garantizadas. La colocación consta de dos tramos: $75 millones que vencen en 2031 con un interés del 5,32% y $75 millones que vencen en 2034 con un interés del 5,53%. Se espera que la financiación llegue en el Q4 2024, sujeta a condiciones de cierre. IRT planea usar los ingresos para pagar deudas hipotecarias garantizadas que vencen en 2025 y reducir los préstamos en su línea de crédito rotativa. El CFO Jim Sebra declaró que esta transacción demuestra la confianza de los inversores en la estrategia y el balance de IRT, y fortalecerá la posición financiera de la empresa mientras se mantiene neutral en términos de apalancamiento y ganancias. BofA Securities lideró la colocación, con Citigroup como co-agente de colocación.
Independence Realty Trust (NYSE: IRT)는 1억 5천만 달러 규모의 사모 채권 발행을 발표했습니다. 발행금액은 두 가지 분할로 구성되어 있으며, 2031년에 만기되는 7천5백만 달러는 5.32%의 이자율을, 2034년에 만기되는 7천5백만 달러는 5.53%의 이자율을 갖습니다. 자금 조달은 2024년 4분기에 이루어질 것으로 예상되며, 종료 조건에 따라 달라질 수 있습니다. IRT는 이 수익금을 2025년에 만기되는 secured mortgage 부채를 상환하고 회전 신용 시설의 차입금을 줄이는 데 사용할 계획입니다. CFO Jim Sebra는 이 거래가 IRT의 전략 및 재무 상태에 대한 투자자의 신뢰를 보여주며, 회사의 재무적 위치를 강화하고 레버리지와 수익에서 중립을 유지할 것이라고 밝혔습니다. BofA Securities가 발행을 주도하였고, Citigroup이 공동 발행 대리인으로 참여했습니다.
Independence Realty Trust (NYSE: IRT) a annoncé une placement privé de 150 millions de dollars d'obligations non garanties. Le placement se compose de deux tranches : 75 millions de dollars arrivant à échéance en 2031 avec un intérêt de 5,32% et 75 millions de dollars arrivant à échéance en 2034 avec un intérêt de 5,53%. Le financement est prévu pour le Q4 2024, sous réserve des conditions de clôture. IRT prévoit d'utiliser les produits pour rembourser des dettes hypothécaires garanties arrivant à échéance en 2025 et réduire les emprunts sur sa ligne de crédit renouvelable. Le CFO Jim Sebra a déclaré que cette transaction démontre la confiance des investisseurs dans la stratégie et le bilan de IRT, et renforcera la position financière de l'entreprise tout en restant neutre en termes d'endettement et de bénéfices. BofA Securities a dirigé le placement, avec Citigroup en tant qu'agent de placement collaborateur.
Independence Realty Trust (NYSE: IRT) hat eine private Platzierung von 150 Millionen US-Dollar für unbesicherte Anleihen angekündigt. Die Platzierung besteht aus zwei Tranchen: 75 Millionen US-Dollar mit Fälligkeit im Jahr 2031 bei einem Zinssatz von 5,32% und 75 Millionen US-Dollar mit Fälligkeit im Jahr 2034 bei einem Zinssatz von 5,53%. Die Finanzierung wird voraussichtlich im Q4 2024 erfolgen, vorbehaltlich der Abschlussbedingungen. IRT plant, die Erlöse zur Rückzahlung von gesicherten Hypothekenverbindlichkeiten, die im Jahr 2025 fällig werden, zu verwenden und die Kredite aus seiner revolvierenden Kreditfazilität zu reduzieren. CFO Jim Sebra erklärte, dass diese Transaktion das Vertrauen der Investoren in die Strategie und die Bilanz von IRT demonstriere und die finanzielle Position des Unternehmens stärken werde, während sie in Bezug auf Verschuldung und Erträge neutral bleibe. BofA Securities leitete die Platzierung, mit Citigroup als Co-Platzierungspartner.
- Secured $150 million in unsecured notes through private placement
- Demonstrates investor confidence in IRT's strategy and balance sheet
- Strengthens the company's financial position
- Transaction is expected to be leverage and earnings neutral
- Increases long-term debt obligations with notes due in 2031 and 2034
- Funding not expected until Q4 2024, subject to closing conditions
Insights
Independence Realty Trust's
The planned use of proceeds to repay 2025 maturing secured mortgage debt and revolving credit facility borrowings suggests a proactive approach to debt management. This shift from secured to unsecured debt could potentially increase financial flexibility. However, the delayed funding until Q4 2024 raises questions about the company's immediate liquidity needs and the timing of debt maturities.
IRT's private placement reflects a broader trend in the REIT sector towards unsecured debt. This move could enhance the company's financial agility by freeing up properties from mortgage liens. The fixed interest rates, while slightly higher than current treasury yields, provide long-term certainty in a volatile rate environment.
The transaction being both leverage and earnings neutral is crucial, indicating it won't negatively impact IRT's debt ratios or profitability. However, investors should note that this doesn't necessarily improve the company's financial position but rather maintains the status quo. The support from a high-quality institutional investor does signal confidence in IRT's strategy, which could positively influence market perception.
IRT expects that the funding of the Notes will occur in the fourth quarter of 2024, subject to customary closing conditions, and intends to use all of the net proceeds to repay secured mortgage debt scheduled to mature in 2025 and borrowings outstanding under its revolving credit facility.
“This transaction highlights strong support by a high-quality institutional investor that we believe demonstrates their conviction in IRT’s strategy and balance sheet,” said Jim Sebra, IRT’s Chief Financial Officer. “The private placement will strengthen our balance sheet and be both leverage and earnings neutral.”
BofA Securities, Inc. was the Lead Placement Agent and Sole Bookrunner on this transaction, with Citigroup Global Markets Inc. acting as a Co-Placement Agent.
About Independence Realty Trust, Inc.
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway
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Independence Realty Trust, Inc.
Edelman Smithfield
Lauren Torres
917-365-7979
IRT@edelman.com
Source: Independence Realty Trust, Inc.
FAQ
What is the total amount of unsecured notes IRT is selling in the private placement?
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When does IRT expect the funding of the unsecured notes to occur?
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