Alexandria Real Estate Equities Begins $800 Million Tender Offer From Pasadena Headquarters

Alexandria Real Estate Equities, Inc., headquartered on North Euclid Avenue in Pasadena, announced it has commenced cash tender offers to purchase up to $800 million of its outstanding senior notes.

In a statement, the company said the tender offers cover its 3.000% Senior Notes due 2051, 3.550% Senior Notes due 2052, and 4.000% Senior Notes due 2050. The notes are fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P.

“Each Holder who validly tenders and does not subsequently validly withdraw its Notes at or prior to 5:00 p.m., New York City time, on Feb. 9 (the ‘Early Tender Date’) will be entitled to receive the applicable total consideration (‘Total Consideration’), which includes an early tender premium of $50 per $1,000 principal amount of the Notes accepted for purchase (‘Early Tender Premium’), plus accrued and unpaid interest up to, but not including, the Early Settlement Date,” the company stated.

Holders who tender after the Early Tender Date but on or before 5 p.m. New York time on Feb. 25 will receive “tender offer consideration (‘Tender Offer Consideration’) equal to the Total Consideration less the Early Tender Premium, plus accrued and unpaid interest up to, but not including, the applicable settlement date,” according to the release.

The early settlement date is expected to be Feb. 12, while the final settlement date is scheduled for Feb. 27. Acceptance will follow a priority order, with higher-ranked notes purchased before lower-ranked series, subject to proration and the $800 million cap. The company noted that if the tender offers are not fully subscribed at the Early Tender Date, notes validly tendered by that deadline will be accepted in priority to notes tendered later, even if later tenders have a higher acceptance priority level.

The company said its obligation to accept and pay for notes is subject to receiving at least $500 million in gross proceeds from other capital markets financing transactions.

Alexandria retained Citigroup Global Markets Inc., Barclays Capital Inc. and J.P. Morgan Securities LLC as lead dealer managers. Global Bondholder Services Corporation is serving as depositary and information agent.

Alexandria, an S&P 500® company, described itself in the press release as “a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative Megacampus™ ecosystems in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle and New York City.”