American Campus Communities, Inc.
) recently priced 10-year senior unsecured notes to boost its
liquidity position. In particular, the company's operating arm -
American Campus Communities Operating Partnership LP - has issued
4.125% senior notes worth $400 million at 99.861% of par value. The
settlement of this offering is expected to complete on Jun 24,
2014, upon fulfillment of customary closing conditions.
The interest on these notes is payable on Jan 1 and Jul 1, on a
semiannual basis. The first interest payment will begin on Jan 1,
2015. American Campus projects to reap around $395.3 million from
the offering that will be used for paying off the outstanding
balance under the revolving credit facility, investing in
acquisitions and redevelopments and other corporate needs.
Several renowned financial institutions such as -
), BofA Merrill Lynch of
Bank of America Corporation
) and J.P. Morgan of
JPMorgan Chase & Co.
) - helped American Campus as Joint Book-Running Managers for this
We believe that American Campus' focus on maintaining a flexible
balance sheet with ample liquidity would enable it to operate
efficiently and capitalize on potential acquisition and investment
opportunities. This, in turn, would help augment its top line.
Moreover, paying back of debt would reduce its interest
Based in Austin, TX, American Campus is a residential real
estate investment trust (REIT). The company primarily engages in
development, ownership and management of high-quality student
housing communities in the U.S. Currently, the company owns
167 assets comprising about 102,700 beds.
American Campus currently carries a Zacks Rank #3 (Hold).
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