W. P. Carey Inc. Announces Pricing of $500 Million of Senior Unsecured Notes

Rhea-AI Summary

W. P. Carey Inc. (NYSE: WPC) has priced a public offering of $500 million of 2.400% Senior Notes due 2031. The Notes are offered at 99.099% of the principal amount, with interest paid semi-annually starting February 1, 2021. Expected settlement date is October 14, 2020. Proceeds will be used to repay debt, fund future acquisitions, and for general corporate purposes. This offering is led by Wells Fargo Securities, J.P. Morgan, and U.S. Bancorp.

Investors should read the prospectus supplement for comprehensive details.

Positive

• Successful pricing of $500 million in Senior Notes, indicating strong market interest.
• Lower interest rate of 2.400% may enhance cash flow flexibility.
• Proceeds to be utilized for debt repayment and potential acquisitions, indicating strategic financial management.

Negative

• The offering may increase overall debt levels if proceeds are not used effectively.
• Market conditions could impact the success of future acquisitions as planned.

NEW YORK, Oct. 6, 2020 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC) announced today that it has priced an underwritten public offering of $500 million aggregate principal amount of 2.400% Senior Notes due 2031 (the "Notes"). The Notes were offered at 99.099% of the principal amount.

Interest on the Notes will be paid semi-annually on February 1 and August 1 of each year, beginning on February 1, 2021. The offering of the Notes is expected to settle on October 14, 2020, subject to customary closing conditions. W. P. Carey Inc. intends to use the net proceeds from this offering to repay certain indebtedness, including amounts outstanding under its unsecured revolving credit facility, which was used in part to repay secured mortgage debt outstanding, to fund potential future acquisitions, and for general corporate purposes.

Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and U.S. Bancorp Investments, Inc. acted as joint book-running managers for the Notes offering.

A registration statement relating to the Notes 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 W. P. Carey Inc. and the offering. Potential investors may obtain these documents for free by visiting EDGAR on the Securities and Exchange Commission (the "SEC") website at www.sec.gov. Alternatively, potential investors may obtain copies, when available, by contacting: Wells Fargo Securities, LLC at 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attention: WFS Customer Service, by telephone at 1-800-645-3751 or by email at wfscustomerservice@wellsfargo.com; or J.P. Morgan Securities LLC at 383 Madison Avenue, New York, NY, 10179, Attn: Investment Grade Syndicate Desk, 3rd Floor, or by telephone at (212) 834-4533.

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 a diversified real estate investment trust and a leading owner of commercial real estate, net leased to companies located primarily in North America and Europe on a long-term basis.

Forward-Looking Statements

Certain of the matters discussed in this press release 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 the intent, belief or expectations of W. P. Carey Inc., and may be identified by the use of words such as "may," "will," "should," "would," "could," "assume," "outlook," "seek," "plan," "believe," "expect," "anticipate," "intend," "estimate," "forecast" and other comparable terms. These forward-looking statements represent W. P. Carey Inc.'s expectations and beliefs concerning future events, and no assurance can be given that the future results described in this press release will be achieved. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results, performance or achievements of the companies. The factors and assumptions upon which any forward-looking statements herein are based are subject to risks and uncertainties which include, among others, risks associated with the offering of the Notes, including whether such offering of the Notes will be successful and on what terms it may be completed; the risk factors set forth in W. P. Carey Inc.'s most recent Annual Report on Form 10-K, in subsequent reports filed with the SEC (including its most recent Quarterly Report on Form 10-Q) and in the prospectus supplement relating to the Notes, dated October 6, 2020; and other factors over which it has little or no control. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this communication may not occur. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication, unless noted otherwise. Except as required under the federal securities laws and the rules and regulations of the SEC, W. P. Carey Inc. does not undertake any obligation to publicly release any revisions to the forward-looking statements to reflect events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events.

Institutional Investors:
Peter Sands
W. P. Carey Inc.
212-492-1110
institutionalir@wpcarey.com

Press Contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
gblawrence@rosslawpr.com 

 

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SOURCE W. P. Carey Inc.

FAQ

What are the details of WPC's recent Senior Notes offering?

W. P. Carey priced a public offering of $500 million in 2.400% Senior Notes due 2031, with settlement expected on October 14, 2020.

How will WPC use the proceeds from the Senior Notes offering?

The proceeds will be used to repay certain debt, fund potential acquisitions, and for general corporate purposes.

When will interest on the Senior Notes be paid?

Interest on the Notes will be paid semi-annually on February 1 and August 1, starting February 1, 2021.

Who managed the Senior Notes offering for WPC?

The Senior Notes offering was managed by Wells Fargo Securities, J.P. Morgan, and U.S. Bancorp.

What risks are associated with WPC's Senior Notes offering?

Risks include market conditions affecting the success of future acquisitions and potential increases in overall debt levels.