Federal Realty Investment Trust (NYSE:FRT) today announced the closing of its public offering of $250 million aggregate principal amount of 3.625% senior unsecured notes due August 1, 2046. The notes were offered at 97.756% of the principal amount with a yield to maturity of 3.750%. Interest on the notes will be payable on February 1 and August 1 of each year, beginningFebruary 1, 2017.
Federal Realty intends to use the net proceeds from this offering to pay down the outstanding balance under its revolving credit facility and for general corporate purposes.
"While we did not anticipate accessing the long term unsecured debt markets until late in 2016 or early 2017, the recent unprecedented strength in the U.S. Treasury market and the attractiveness of our credit caused us to opportunistically issue this very long term capital, on highly compelling financial terms, at this time," saidDonald C. Wood, Federal Realty's President and Chief Executive Officer. "Although this transaction will be modestly dilutive to our earnings for the balance of 2016 (as we had been using our line of credit for operational funding purposes), the 2016 and 2017 spending requirements of our growing real estate platform will now be appropriately funded for the long term."
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 in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, our mission is to deliver long term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Our expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose inNorth Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 96 properties include over 2,800 tenants, in approximately 22 million square feet, and over 1,800 residential units.
