UDR Prices Senior Unsecured Notes Due 2034
UDR, Inc. (NYSE: UDR) has priced an offering of $300 million in 5.125% senior unsecured notes due 2034. The notes were priced at 98.977% of the principal amount, yielding 5.257% to maturity. The effective interest rate is 5.08%, considering prior interest rate hedges but excluding offering costs. Interest is payable semiannually on March 1 and September 1, starting March 1, 2025. The notes mature on September 1, 2034, unless redeemed earlier. United Dominion Realty, L.P. fully guarantees the notes. UDR plans to use the net proceeds to repay outstanding commercial paper debt and for general corporate purposes. The offering is expected to settle on August 15, 2024, subject to customary closing conditions.
UDR, Inc. (NYSE: UDR) ha prezzato un'offerta di 300 milioni di dollari in note senior non garantite con un tasso del 5,125% in scadenza nel 2034. Le note sono state prezzate al 98,977% dell'importo nominale, con un rendimento del 5,257% fino alla scadenza. Il tasso d'interesse effettivo è del 5,08%, considerando le coperture dei tassi d'interesse precedenti, ma escludendo i costi dell'offerta. Gli interessi sono pagabili semestralmente il 1° marzo e il 1° settembre, a partire dal 1° marzo 2025. Le note scadono il 1° settembre 2034, salvo un rimborso anticipato. United Dominion Realty, L.P. garantisce completamente le note. UDR prevede di utilizzare i proventi netti per rimborsare il debito commerciale in scadenza e per scopi aziendali generali. Si prevede che l'offerta si concluda il 15 agosto 2024, soggetta a condizioni di chiusura consuete.
UDR, Inc. (NYSE: UDR) ha fijado una oferta de 300 millones de dólares en notas senior no garantizadas con un interés del 5,125% con vencimiento en 2034. Las notas se fijaron al 98,977% del monto principal, generando un rendimiento del 5,257% hasta su vencimiento. La tasa de interés efectiva es del 5,08%, considerando las coberturas de tasas de interés anteriores pero excluyendo los costos de la oferta. Los intereses se pagarán semestralmente el 1 de marzo y el 1 de septiembre, comenzando el 1 de marzo de 2025. Las notas vencerán el 1 de septiembre de 2034, a menos que se rediman antes. United Dominion Realty, L.P. garantiza completamente las notas. UDR planea usar los ingresos netos para pagar la deuda de papel comercial pendiente y para fines corporativos generales. Se espera que la oferta se liquide el 15 de agosto de 2024, sujeta a las condiciones habituales de cierre.
UDR, Inc. (NYSE: UDR)가 3억 달러의 공모를 가격 책정했습니다 이는 2034년에 만기되는 5.125%의 비보장 선순위 채권입니다. 채권은 원금의 98.977%로 가격이 책정되어 만기 시 5.257%의 수익률을 제공합니다. 유효 이자율은 5.08%로, 이전 이자율 헤지를 고려하였으나 공모 비용은 제외하였습니다. 이자는 2025년 3월 1일부터 매년 3월 1일과 9월 1일에 반기별로 지급됩니다. 이 채권은 2034년 9월 1일에 만기되며, 조기 상환될 수 있습니다. United Dominion Realty, L.P.가 채권을 완전히 보증합니다. UDR은 순수익을 사용하여 유효한 상업 어음 부채를 상환하고 일반 기업 목적을 위해 사용할 계획입니다. 이 제안은 2024년 8월 15일에 정산될 예정이며, 일반적인 마감 조건이 적용됩니다.
UDR, Inc. (NYSE: UDR) a fixé une offre de 300 millions de dollars en obligations senior non garanties d'un taux de 5,125% arrivant à échéance en 2034. Les obligations ont été fixées à 98,977% du montant principal, offrant un rendement de 5,257% jusqu'à l'échéance. Le taux d'intérêt effectif est de 5,08%, en tenant compte des couvertures de taux d'intérêt antérieures mais excluant les coûts de l'offre. Les intérêts seront payés semestriellement le 1er mars et le 1er septembre, à partir du 1er mars 2025. Les obligations arriveront à échéance le 1er septembre 2034, sauf remboursement anticipé. United Dominion Realty, L.P. garantit pleinement les obligations. UDR prévoit d'utiliser les produits nets pour rembourser la dette commerciale impayée et pour des fins corporatives générales. L'offre devrait être réglée le 15 août 2024, sous réserve des conditions de clôture habituelles.
UDR, Inc. (NYSE: UDR) hat ein Angebot von 300 Millionen US-Dollar in 5,125% senior unbesicherten Anleihen mit Fälligkeit im Jahr 2034 bepreist. Die Anleihen wurden zu 98,977% des Nennbetrags bepreist und bieten eine Rendite von 5,257% bis zur Fälligkeit. Der effektive Zinssatz beträgt 5,08%, wenn man frühere Zinsabsicherungen berücksichtigt, jedoch die Angebotskosten ausschließt. Die Zinsen sind halbjährlich am 1. März und 1. September fällig, beginnend am 1. März 2025. Die Anleihen laufen am 1. September 2034 aus, es sei denn, sie werden zuvor zurückgezahlt. United Dominion Realty, L.P. garantiert die Anleihen vollständig. UDR plant, die Nettomittel zu verwenden, um ausstehende Commercial-Paper-Schulden zurückzuzahlen und für allgemeine Unternehmenszwecke. Das Angebot wird voraussichtlich am 15. August 2024 unter den üblichen Abschlussbedingungen abgeschlossen.
- Successful pricing of $300 million senior unsecured notes
- Effective interest rate of 5.08%, including prior interest rate hedges
- Full guarantee of notes by United Dominion Realty, L.P.
- Potential to reduce commercial paper debt with proceeds
- Increase in long-term debt obligations
- Potential impact on future interest expenses
Insights
UDR's pricing of
The use of proceeds to repay commercial paper suggests a shift from short-term to long-term financing, which could improve the company's debt maturity profile and reduce refinancing risk. However, investors should note that while this move provides financial flexibility, it also increases the company's long-term debt obligations, which could impact future cash flows and financial ratios.
UDR's decision to issue
Investors should consider how this additional capital might be deployed to enhance the company's real estate portfolio and potentially drive future revenue growth. However, it's important to monitor the impact on UDR's debt-to-equity ratio and ensure that the increased leverage is justified by corresponding improvements in the company's asset base or operational efficiencies.
The effective interest rate of the notes is
Interest is payable on the notes semiannually on March 1 and September 1 with the first interest payment on March 1, 2025. The notes will mature on September 1, 2034 unless redeemed prior to that date.
The notes are fully and unconditionally guaranteed by United Dominion Realty, L.P.
The Company expects to use the net proceeds from the offering for repayment of currently outstanding indebtedness under its commercial paper program and general corporate purposes.
The settlement of the offering is expected to occur on August 15, 2024, subject to the satisfaction of customary closing conditions.
J.P. Morgan Securities LLC, BofA Securities, Inc., RBC Capital Markets, LLC, Wells Fargo Securities, LLC, Regions Securities LLC, TD Securities (
The Company has filed a registration statement (including a pricing supplement, prospectus supplement and prospectus) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the pricing supplement, prospectus supplement and prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, copies of these documents may be obtained by contacting (i) J.P. Morgan Securities LLC 383 Madison Avenue,
Forward-Looking Statements
Certain statements made in this press release may constitute “forward-looking statements.” Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed or implied by a forward-looking statement, due to a number of factors, which include, but are not limited to, general market and economic conditions, unfavorable changes in the apartment market and economic conditions that could adversely affect occupancy levels and rental rates, the impact of inflation/deflation on rental rates and property operating expenses, the availability of capital and the stability of the capital markets, rising interest rates, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule or at expected rent and occupancy levels, changes in job growth, home affordability and demand/supply ratio for multifamily housing, development and construction risks that may impact profitability, risks that joint ventures with third parties and Developer Capital Program investments do not perform as expected, the failure of automation or technology to help grow net operating income, and other risk factors discussed in documents filed by the Company with the SEC from time to time, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the
About UDR, Inc.
UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted
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UDR, Inc.
Trent Trujillo
ttrujillo@udr.com
720-283-6135
Source: UDR, Inc.
FAQ
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