W. P. Carey Inc. Announces Pricing of $400 Million of Senior Unsecured Notes
W. P. Carey Inc. (NYSE: WPC) has announced the pricing of a $400 million public offering of 5.375% Senior Unsecured Notes due 2034, sold at 98.843% of the principal amount. The notes will have semi-annual interest payments starting on December 30, 2024. The offering is expected to close on June 28, 2024, pending standard closing conditions. The proceeds will be used for general corporate purposes such as future investments, including acquisitions and development, and to repay existing debt. BofA Securities, J.P. Morgan, PNC Capital Markets, and U.S. Bancorp Investments are acting as joint book-running managers. Potential investors can access more information on the SEC's EDGAR database.
- Successful pricing of $400 million public offering.
- Favorable interest rate of 5.375%.
- Proceeds to support future investments and debt repayment.
- Strong backing by prominent financial institutions.
- Notes sold at a discount (98.843% of principal amount).
- Potential increased debt burden.
Insights
W. P. Carey Inc.'s announcement of pricing $400 million in senior unsecured notes at an interest rate of
In the short term, the proceeds from these notes can provide the company with immediate capital to fund potential future investments and repay existing debt. This strategic flexibility could enable W. P. Carey to capitalize on new opportunities or improve its balance sheet by reducing higher-interest debt, potentially enhancing future cash flows.
However, the cost of the new debt is not negligible. An interest rate of
In the long term, higher debt levels can impact the company's credit rating and financial stability, especially if the returns on the new investments do not exceed the cost of debt. Investors should monitor how effectively the company deploys this capital into value-generating ventures.
Overall, the issuance of these senior notes is a double-edged sword: it provides necessary capital but comes at a significant cost.
Interest on the Notes will be paid semi-annually on June 30 and December 30 of each year, beginning on December 30, 2024. The offering of the Notes is expected to settle on June 28, 2024, subject to customary closing conditions. The Company intends to use the net proceeds from this offering for general corporate purposes, including to fund potential future investments (including acquisitions and development and redevelopment activities) and to repay indebtedness.
BofA Securities, Inc., J.P. Morgan, PNC Capital Markets LLC, and
A registration statement relating to the Notes has been filed with the Securities and Exchange Commission (the "SEC") and has become effective under the Securities Act of 1933, as amended (the "Securities Act"). The offering is being made by means of a prospectus supplement and prospectus. Before making an investment in the Notes, potential investors should read the prospectus supplement and the accompanying prospectus for more complete information about the Company and the offering. Potential investors may obtain these documents for free by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, potential investors may obtain copies, when available, by contacting: BofA Securities, Inc. toll-free at (800) 294-1322, J.P. Morgan Securities LLC collect at (212) 834-4533, PNC Capital Markets LLC toll-free at (855) 881-0697, and
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offer or sale of the Notes will be made only by means of a prospectus supplement relating to the offering and the accompanying prospectus.
W. P. Carey Inc.
W. P. Carey Inc. is an internally-managed diversified REIT and a leading owner of commercial real estate, net leased to companies located primarily in
Forward-Looking Statements
Certain of the matters discussed in this communication constitute forward-looking statements within the meaning of the Securities Act and the Securities Exchange Act of 1934 (as amended), both as amended by the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, among other things, statements regarding: expectations regarding the use of proceeds of this offering and the settlement date. Forward looking statements are generally identified by the use of words such as "may," "will," "should," "would," "will be," "will continue," "will likely result," "believe," "project," "expect," "anticipate," "intend," "estimate" "opportunities," "possibility," "strategy,", "plan," "maintain" or the negative version of these words and other comparable terms. These forward-looking statements include, but are not limited to, statements that are not historical facts.
These statements are based on the current expectations of the Company's management, and it is important to note that the Company's actual results could be materially different from those projected in such forward-looking statements. You should exercise caution in relying on forward-looking statements as they involve known and unknown risks, uncertainties, and other factors that may materially affect the Company's future results, performance, achievements, or transactions. Information on factors that could impact actual results and cause them to differ from what is anticipated in the forward-looking statements contained herein is included in the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024, as filed with the SEC on May 1, 2024, as well as in the Company's other filings with the SEC, including but not limited to those described in Part I, Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed with the SEC on February 9, 2024. Moreover, because the Company operates in a very competitive and rapidly changing environment, new risks are likely to emerge from time to time. Given these risks and uncertainties, potential investors are cautioned not to place undue reliance on these forward-looking statements as a prediction of future results, which speak only as of the date of this communication, unless noted otherwise. Except as required by federal securities laws and the rules and regulations of the SEC, the Company does not undertake to revise or update any forward-looking statements.
Institutional Investors:
Peter Sands
W. P. Carey Inc.
212-492-1110
institutionalir@wpcarey.com
Press Contact:
Anna McGrath
W. P. Carey Inc.
212-492-1166
amcgrath@wpcarey.com
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SOURCE W. P. Carey Inc.
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