Federal Realty Investment Trust Announces Green Bond Pricing
Federal Realty Investment Trust (NYSE: FRT ) announced today that its operating partnership, Federal Realty OP LP (“Operating Partnership”), has priced its public offering of $350 million aggregate principal amount of 5.375% notes due 2028 (the “Green Notes »). ”) at an effective yield of 5.468%, maturing on 1 May 2028. The offer is expected to close on 12 April 2023, subject to the satisfaction of customary closing conditions.
The Operating Partnership intends to allocate an amount equal to the net proceeds from this offering to the financing and refinancing of recently completed and future eligible green projects (“Eligible Green Projects”). Qualified green projects mean: (i) investments in the acquisition of buildings; (ii) building developments or alterations; (iii) renovations in existing buildings; and (iv) tenant improvement projects, in each case, that have received, or are expected to receive, during the three years prior to the issuance of the notes or during the term of the notes, a LEED Gold or Platinum certification (or environmentally equivalent successor standards). Net proceeds allocated to previously incurred costs related to eligible green projects will be available for debt repayment, which the Operating Partnership intends to include financing the repayment in full of all of our outstanding 2.75% Notes due 2023, and for general corporate purposes . Pending such uses of the net proceeds, we may invest the net proceeds in short-term income-producing investments or may use the net proceeds to temporarily repay current and/or future amounts outstanding under our revolving credit facility.
JP Morgan, PNC Capital Markets LLC, TD Securities, BofA Securities, Regions Securities LLC, Truist Securities, US Bancorp and Wells Fargo Securities served as joint book-running managers for the green bonds. BNP PARIBAS, Citigroup, Deutsche Bank Securities, Ramirez & Co., Inc., Scotiabank and SMBC Nikko acted as co-managers for the green bonds.
The offer of the green bonds takes place in accordance with an effective shelf registration statement, prospectus and associated prospectus supplement. Copies of the prospectus supplement and the base prospectus, when available, may be obtained by contacting: (i) JP Morgan at 1-212-834-4533; (ii) PNC Capital Markets LLC at 1-855-881-0697; (iii) TD Securities at 1-855-495-9846; or (iv) BofA Securities at 1-800-294-1322. Investors can also obtain these documents for free by visiting EDGAR on the Securities and Exchange Commission’s website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification . under the securities laws of such state or other jurisdiction.
