National Retail Properties, Inc. Prices Offering Of $450,000,000 Of 3.000% Senior Unsecured Notes Due 2052

Rhea-AI Summary

National Retail Properties, Inc. (NYSE: NNN) has priced its public offering of $450 million in 3.000% senior unsecured notes due 2052, offered at 97.684% of the principal amount. The notes yield 3.118% and will pay interest semi-annually starting April 15, 2022. The offering is set to close around September 24, 2021, pending customary conditions. Proceeds will be used to redeem 13.8 million outstanding depositary shares related to 5.200% Series F Cumulative Redeemable Preferred Stock. The Company owned 3,173 properties with an average lease term of 10.6 years as of June 30, 2021.

Positive

• Successfully priced a public offering of $450 million in senior unsecured notes.
• The notes provide a stable yield of 3.118%, potentially attracting income-focused investors.
• Proceeds will be used to redeem higher-cost Series F Preferred Stock, enhancing financial efficiency.

Negative

• The offering's closing is subject to customary conditions, which may delay the transaction.
• Potential risks include impacts from COVID-19 on operations and financial results.

ORLANDO, Fla., Sept. 15, 2021 /PRNewswire/ -- National Retail Properties, Inc. (NYSE: NNN) (the "Company") today announced that it has priced its public offering of $450,000,000 of 3.000% senior unsecured notes due 2052 (the "notes").  The notes were offered at 97.684% of the principal amount with a yield to maturity of 3.118%.  Interest on the notes will be payable semi-annually on April 15 and October 15 of each year, commencing on April 15, 2022.  The notes mature on April 15, 2052. The offering is expected to close on or about September 24, 2021, subject to customary closing conditions.

BofA Securities, Inc., Wells Fargo Securities, LLC, Citigroup Global Markets Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC and Truist Securities, Inc. are acting as joint book-running managers and representatives of the underwriters for the offering. TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. are acting as joint book-running managers for the offering. Morgan Stanley & Co. LLC, Capital One Securities, Inc. and Raymond James & Associates, Inc. are acting as senior co-managers for the offering.

The Company intends to use the net proceeds from the offering of the notes to redeem all 13,800,000 outstanding depositary shares, each representing a 1/100th interest in a share of the Company's 5.200% Series F Cumulative Redeemable Preferred Stock, par value $0.01 per share (the "Depositary Shares") and the Series F Cumulative Redeemable Preferred Stock underlying the Depositary Shares (the "Series F Preferred Stock" and, together with the Depositary Shares, the "Series F Preferred Securities"). This press release does not constitute a notice of redemption of such Series F Preferred Securities.

The offering is being made only by means of a prospectus supplement and accompanying prospectus, which are part of an effective shelf registration statement the Company filed with the Securities and Exchange Commission ("SEC").  You may obtain copies of these documents for free by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, copies of these documents, when available, may be obtained by contacting BofA Securities, Inc., 200 North College Street, NC1-004-03-43, Charlotte, NC 28255-0001, Attention: Prospectus Department, by telephone: 1-800-294-1322 or by email at dg.prospectus_requests@bofa.com; Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 5540, Attention: WFS Customer Service, by telephone: 1-800-645-3751, or by email at wfscustomersupport@wellsfargo.com; Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: 1-800-831-9146 or email: prospectus@citi.com; PNC Capital Markets LLC, 300 Fifth Ave, Pittsburgh, PA 15222, Attention: Securities Settlement, by telephone: (855) 881-0697 or by email at secsett@pnc.com; RBC Capital Markets, LLC, 200 Vesey Street, 8th Floor, New York, NY 10281, Attention: Transaction Management, by telephone: (866) 375-6829 or by email at rbcnyfixedincomeprospectus@rbccm.com; or Truist Securities, Inc., 303 Peachtree Street, Atlanta, GA 30308, Attention: Prospectus Dept, by telephone: (800) 685-4786 or by email at TSIdocs@Truist.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

National Retail Properties, Inc. invests primarily in high-quality retail properties subject generally to long-term, net leases. As of June 30, 2021, the Company owned 3,173 properties in 48 states with an aggregate gross leasable area of approximately 32.7 million square feet and with a weighted average remaining lease term of 10.6 years.

Statements in this press release that are not strictly historical are "forward-looking" statements. These statements generally are characterized by the use of terms such as "believe," "expect," "intend," "may," "estimated," or other similar words or expressions. Forward-looking statements involve known and unknown risks, which may cause the Company's actual future results to differ materially from expected results. For example, the fact that this offering has priced may imply that this offering will close, but the closing is subject to conditions customary in transactions of this type and may be delayed or may not occur at all. No assurance can be given that the offering discussed above will be completed on the terms described or at all or that the net proceeds of this offering will be used as described. Completion of this offering on the terms described, and the application of the net proceeds of this offering, are subject to numerous possible events, factors and conditions, many of which are beyond the control of the Company or are unknown to it. These risks include, among others, the potential impacts of the COVID-19 pandemic on the Company's business operations, financial results and financial position and on the world economy, general economic conditions, local real estate conditions, changes in interest rates, increases in operating costs, the preferences and financial condition of the Company's tenants, the availability of capital and risks related to the Company's status as a REIT. Additional information concerning these and other factors that could cause actual results to differ materially from these forward-looking statements is contained from time to time in the Company's SEC filings, including, but not limited to, the Company's Annual Report on Form 10-K. Copies of each filing may be obtained from the Company or the SEC. Such forward-looking statements should be regarded solely as reflections of the Company's current operating plans and estimates. Actual results may differ materially from what is expressed or forecast in this press release. National Retail Properties, Inc. undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.

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SOURCE National Retail Properties, Inc.

FAQ

What is the purpose of the $450 million offering by National Retail Properties (NNN)?

The proceeds will be used to redeem outstanding depositary shares of the 5.200% Series F Cumulative Redeemable Preferred Stock.

What is the maturity date of the new unsecured notes issued by NNN?

The new unsecured notes are due on April 15, 2052.

When will the interest on the new notes be paid?

Interest on the notes will be paid semi-annually on April 15 and October 15, starting April 15, 2022.

What is the yield of the new unsecured notes from NNN?

The notes have a yield to maturity of 3.118%.

What is the size of National Retail Properties' portfolio as of June 30, 2021?

The Company owned 3,173 properties with approximately 32.7 million square feet of gross leasable area.