Camden Property Trust (CPT) today announced it has priced a $300 million offering of senior unsecured notes under its existing shelf registration. These 30-year notes were issued at 99.941% of par value with a coupon of 3.350%. Interest on the notes is payable semi-annually on May 1 and November 1, with the first payment becoming due and payable on May 1, 2020, and the notes will mature on November 1, 2049. Camden expects to use the net proceeds of approximately $296.6 million, together with cash on hand, to fund the early redemption of all of the $250 million aggregate principal amount of its 4.625% Senior Notes due 2021, plus a make-whole premium and accrued and unpaid interest to the date of redemption, and to repay all of the approximately $45.5 million aggregate principal amount of its 4.38% secured conventional mortgage note due 2045, plus a prepayment premium and interest to the date of repayment. In connection with this redemption and prepayment, Camden expects to record a one-time charge of approximately $12 million, or approximately $0.12 per share, to its net income in the fourth quarter of 2019. Settlement is scheduled for October 7, 2019, subject to customary closing conditions.
BofA Securities, Inc., Jefferies LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are Joint Book-Running Managers. Deutsche Bank Securities Inc., Regions Securities LLC, Scotia Capital (USA) Inc. and SunTrust Robinson Humphrey, Inc. are Senior Co-Managers and BB&T Capital Markets, a division of BB&T Securities, LLC, and TD Securities (USA) LLC are Co-Managers in the transaction.
Camden has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (SEC) for the offering to which this communication relates. Before you invest, you should read the prospectus in this registration statement and other documents Camden has filed with the SEC for more complete information about Camden and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, Camden, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling BofA Securities, Inc. toll-free at 1-800-294-1322, Jefferies LLC toll free at 1-877-877-0696, J.P. Morgan Securities LLC collect at 1-212-834-4533, U.S. Bancorp Investments, Inc. toll-free at 1-877-558-2607 or Wells Fargo Securities, LLC toll-free at 1-800-645-3751.
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 these notes in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or other jurisdiction.
In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates, and projections about the industry and markets in which Camden operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. Factors which may cause Camden’s actual results or performance to differ materially from those contemplated by forward-looking statements are described under the heading “Risk Factors” in Camden’s Annual Report on Form 10-K and in other filings with the SEC. Forward-looking statements made in today’s press release represent management’s current opinions at the time of this publication, and Camden assumes no obligation to update or supplement these statements because of subsequent events.
Camden Property Trust, an S&P 400 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns interests in and operates 165 properties containing 56,271 apartment homes across the United States. Upon completion of 6 properties currently under development, the Company’s portfolio will increase to 58,077 apartment homes in 171 properties. Camden was recently named by FORTUNE Magazine for the 12th consecutive year as one of the 100 Best Companies to Work For® in America, ranking #19.
For additional information, please contact Camden’s Investor Relations Department at (713) 354-2787.