Sun Communities Announces Full Redemption of 5.500% Senior Notes due 2029 and 5.700% Senior Notes due 2033
Sun Communities has announced the complete redemption of two series of senior notes through its operating partnership. The company will redeem $500 million of 5.500% Senior Notes due 2029 at $1,061.53 per $1,000 principal amount, and $400 million of 5.700% Senior Notes due 2033 at $1,085.88 per $1,000 principal amount.
The redemption is scheduled for May 10, 2025, when interest will cease to accrue on both note series. The redemption prices include a make-whole premium and accrued unpaid interest. Sun Communities plans to fund this redemption using proceeds from its previously announced Safe Harbor Marinas sale.
The company has already initiated the redemption process, with notices sent to all registered noteholders by the indenture trustee. This strategic financial move demonstrates Sun Communities' active management of its debt obligations and utilization of asset sale proceeds to strengthen its financial position.
Sun Communities ha annunciato il completo rimborso di due serie di obbligazioni senior tramite la sua partnership operativa. La società rimborserà 500 milioni di dollari di Obbligazioni Senior al 5,500% con scadenza 2029 a 1.061,53 dollari per ogni 1.000 dollari di valore nominale, e 400 milioni di dollari di Obbligazioni Senior al 5,700% con scadenza 2033 a 1.085,88 dollari per ogni 1.000 dollari di valore nominale.
Il rimborso è previsto per il 10 maggio 2025, data in cui cesseranno di maturare gli interessi su entrambe le serie di obbligazioni. I prezzi di rimborso includono un premio make-whole e gli interessi maturati non ancora pagati. Sun Communities intende finanziare questo rimborso utilizzando i proventi della vendita precedentemente annunciata di Safe Harbor Marinas.
La società ha già avviato il processo di rimborso, con l'invio di notifiche a tutti i detentori registrati delle obbligazioni da parte del trustee dell'atto di vincolo. Questa mossa finanziaria strategica dimostra la gestione attiva di Sun Communities dei propri debiti e l'utilizzo dei proventi della vendita degli asset per rafforzare la propria posizione finanziaria.
Sun Communities ha anunciado el reembolso total de dos series de notas senior a través de su sociedad operativa. La compañía reembolsará 500 millones de dólares de Notas Senior al 5,500% con vencimiento en 2029 a 1,061.53 dólares por cada 1,000 dólares de valor nominal, y 400 millones de dólares de Notas Senior al 5,700% con vencimiento en 2033 a 1,085.88 dólares por cada 1,000 dólares de valor nominal.
El reembolso está programado para el 10 de mayo de 2025, fecha en la que dejarán de acumularse intereses en ambas series de notas. Los precios de reembolso incluyen una prima make-whole y los intereses acumulados no pagados. Sun Communities planea financiar este reembolso con los ingresos de la venta previamente anunciada de Safe Harbor Marinas.
La compañía ya ha iniciado el proceso de reembolso, enviando notificaciones a todos los tenedores registrados de las notas a través del fiduciario del contrato. Esta acción financiera estratégica demuestra la gestión activa de Sun Communities de sus obligaciones de deuda y el uso de los ingresos por la venta de activos para fortalecer su posición financiera.
Sun Communities는 운영 파트너십을 통해 두 종류의 선순위 채권을 전액 상환한다고 발표했습니다. 회사는 2029년 만기 5.500% 선순위 채권 5억 달러를 1,000달러 원금당 1,061.53달러에, 2033년 만기 5.700% 선순위 채권 4억 달러를 1,000달러 원금당 1,085.88달러에 상환할 예정입니다.
상환일은 2025년 5월 10일로, 이 날짜부터 두 채권 시리즈 모두 이자 발생이 중단됩니다. 상환 가격에는 메이크홀 프리미엄과 미지급 누적 이자가 포함되어 있습니다. Sun Communities는 이전에 발표한 Safe Harbor Marinas 매각 수익으로 이번 상환을 자금 조달할 계획입니다.
회사는 이미 상환 절차를 시작했으며, 등기된 모든 채권 보유자에게 신탁 관리자가 통지서를 발송했습니다. 이번 전략적 재무 조치는 Sun Communities가 부채 의무를 적극적으로 관리하고 자산 매각 수익을 활용해 재무 건전성을 강화하고 있음을 보여줍니다.
Sun Communities a annoncé le remboursement intégral de deux séries d'obligations senior via son partenariat opérationnel. La société remboursera 500 millions de dollars d'obligations senior à 5,500 % arrivant à échéance en 2029 au prix de 1 061,53 $ pour 1 000 $ de principal, ainsi que 400 millions de dollars d'obligations senior à 5,700 % arrivant à échéance en 2033 au prix de 1 085,88 $ pour 1 000 $ de principal.
Le remboursement est prévu pour le 10 mai 2025, date à laquelle les intérêts cesseront de courir sur les deux séries d'obligations. Les prix de remboursement comprennent une prime make-whole ainsi que les intérêts courus non payés. Sun Communities prévoit de financer ce remboursement grâce aux recettes issues de la vente précédemment annoncée de Safe Harbor Marinas.
La société a déjà lancé le processus de remboursement, avec l'envoi de notifications à tous les porteurs enregistrés par le fiduciaire de l'acte. Cette démarche financière stratégique illustre la gestion active par Sun Communities de ses obligations d'endettement et l'utilisation des recettes de la vente d'actifs pour renforcer sa position financière.
Sun Communities hat die vollständige Rückzahlung von zwei Serien von Senior Notes über seine Betriebspartnerschaft angekündigt. Das Unternehmen wird 500 Millionen US-Dollar 5,500% Senior Notes mit Fälligkeit 2029 zu 1.061,53 US-Dollar je 1.000 US-Dollar Nennwert und 400 Millionen US-Dollar 5,700% Senior Notes mit Fälligkeit 2033 zu 1.085,88 US-Dollar je 1.000 US-Dollar Nennwert zurückzahlen.
Die Rückzahlung ist für den 10. Mai 2025 geplant, an dem die Verzinsung beider Notenserien endet. Die Rückzahlungspreise beinhalten eine Make-Whole-Prämie sowie aufgelaufene, unbezahlte Zinsen. Sun Communities plant, diese Rückzahlung mit Erlösen aus dem zuvor angekündigten Verkauf von Safe Harbor Marinas zu finanzieren.
Das Unternehmen hat den Rückzahlungsprozess bereits eingeleitet und alle registrierten Anleihegläubiger wurden vom Treuhänder des Schuldverschreibungsvertrags benachrichtigt. Dieser strategische Finanzschritt zeigt, dass Sun Communities seine Schuldenverpflichtungen aktiv verwaltet und Erlöse aus dem Verkauf von Vermögenswerten nutzt, um seine finanzielle Position zu stärken.
- Using proceeds from Safe Harbor Marinas sale to redeem high-interest debt
- Strategic debt management through early redemption of $900M total notes
- Demonstrates strong liquidity position with ability to pay make-whole premiums
- Additional cost from make-whole premiums on early redemption
- Material weakness identified in internal control over financial reporting
- Exposure to interest rate and operating cost increases
Insights
Sun Communities is redeeming $900M in senior notes early using proceeds from Safe Harbor Marinas sale, strengthening their balance sheet.
Sun Communities has announced a significant debt management initiative with the full redemption of
This debt reduction strategy is directly tied to the company's capital recycling efforts, as the redemption will be funded using proceeds from the previously announced sale of Safe Harbor Marinas. This represents a clear prioritization of balance sheet optimization over immediate capital redeployment into new assets.
The premium costs associated with early redemption - approximately
From a financial strength perspective, this
Southfield, MI, April 30, 2025 (GLOBE NEWSWIRE) -- Sun Communities, Inc. (NYSE: SUI) (the “Company”) today announced that its operating partnership, Sun Communities Operating Limited Partnership (“SCOLP”), will redeem all
On the Redemption Date, in accordance with the terms of each series of Notes and the indenture governing the Notes, SCOLP will redeem (a) all outstanding Notes due 2029 at a redemption price equal to
The Company intends to fund the redemption using a portion of the net proceeds from the previously announced sale of Safe Harbor Marinas.
At SCOLP’s request, a notice of redemption of all outstanding Notes has been sent by the indenture trustee for the Notes to all currently registered holders of Notes. This press release does not constitute a notice of redemption under the indenture governing the Notes.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release contains various "forward-looking statements" within the meaning of the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Company intends that such forward-looking statements will be subject to the safe harbors created thereby. For this purpose, any statements contained in this press release that relate to expectations, beliefs, projections, future plans and strategies, trends or prospective events or developments and similar expressions concerning matters that are not historical facts are deemed to be forward-looking statements. Words such as “forecasts,” “intend,” “goal,” “estimate,” “expect,” “project,” “projections,” “plans,” “predicts,” “potential,” “seeks,” “anticipates,” “should,” “could,” “may,” “will,” “designed to,” “foreseeable future,” “believe,” “scheduled,” "guidance", "target" and similar expressions are intended to identify forward-looking statements, although not all forward looking statements contain these words. These forward-looking statements reflect the Company’s current views with respect to future events and financial performance, but involve known and unknown risks, uncertainties and other factors, both general and specific to the matters discussed in or incorporated herein, some of which are beyond the Company’s control. These risks, uncertainties and other factors may cause the Company’s actual results to be materially different from any future results expressed or implied by such forward-looking statements. In addition to the risks disclosed under “Risk Factors” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and the Company’s other filings with the Securities and Exchange Commission from time to time, such risks, uncertainties and other factors include but are not limited to:
- The Company's liquidity and refinancing demands;
- The Company's ability to obtain or refinance maturing debt;
- The Company's ability to maintain compliance with covenants contained in its debt facilities and its unsecured notes;
- Availability of capital;
- General volatility of the capital markets and the market price of shares of the Company's capital stock;
- The risks associated with executing the redemption of the Notes;
- Increases in interest rates and operating costs, including insurance premiums and real estate taxes;
- Difficulties in the Company's ability to evaluate, finance, complete and integrate acquisitions, developments and expansions successfully;
- The ability of the Company to complete the proposed sale of the remaining Safe Harbor properties that are subject to receipt of third-party consents on a timely basis or at all;
- The ability for the Company to realize the anticipated benefits of the sale of Safe Harbor, including with respect to tax strategies, or at all;
- The Company’s succession plan for its CEO, which could impact the execution of the Company’s strategic plan;
- Competitive market forces;
- The ability of purchasers of manufactured homes to obtain financing;
- The level of repossessions of manufactured homes;
- The Company's ability to maintain effective internal control over financial reporting and disclosure controls and procedures;
- The Company's remediation plan and its ability to remediate the material weakness in its internal control over financial reporting;
- Expectations regarding the amount or frequency of impairment losses;
- Changes in general economic conditions, including inflation, deflation, energy costs, the real estate industry and the markets within which the Company operates;
- Changes in foreign currency exchange rates, including between the U.S. dollar and each of the Canadian dollar, Australian dollar and pound sterling;
- The Company's ability to maintain its status as a REIT;
- Changes in real estate and zoning laws and regulations;
- The Company's ability to maintain rental rates and occupancy levels;
- Legislative or regulatory changes, including changes to laws governing the taxation of REITs;
- Outbreaks of disease and related restrictions on business operations;
- Risks related to natural disasters such as hurricanes, earthquakes, floods, droughts and wildfires; and
- Litigation, judgments or settlements, including costs associated with prosecuting or defending claims and any adverse outcomes.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements included or incorporated by reference into this document, whether as a result of new information, future events, changes in the Company's expectations or otherwise, except as required by law.
Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. All written and oral forward-looking statements attributable to the Company or persons acting on the Company's behalf are qualified in their entirety by these cautionary statements.
About Sun Communities, Inc.
Sun Communities, Inc. is a REIT that, as of December 31, 2024, owned, operated, or had an interest in a portfolio of 645 developed properties comprising approximately 176,390 developed sites and approximately 48,760 wet slips and dry storage spaces in the United States, Canada, and the United Kingdom.
For Further Information at the Company:
Fernando Castro-Caratini
Chief Financial Officer
(248) 208-2500
www.suninc.com
FAQ
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