In order to pay off its outstanding debts,
) - a specialty real estate investment trust (REIT) - recently
priced an underwritten equity offering of 5.250% Senior Notes
worth $275 million. The offering is expected to be completed on
Jun 18, 2013 (subject to customary closing conditions).
Notably, some of EPR's subsidiaries will guarantee the senior
notes. J.P. Morgan Securities LLC of
JPMorgan Chase & Co.
), Citigroup Global Markets Inc. of
) and RBC Capital Markets, LLC served as joint book-running
managers for the notes offering.
In particular, EPR intends to use the net proceeds to repay
several outstanding debts - including principal balance of the
unsecured revolving credit facility; fixed rate mortgage debt
secured by 4 Canada-based entertainment retail centers worth
$90.9 million Canadian dollars (U.S. $89.5 million based on a
conversion rate of 0.9843 as of Mar 31, 2013); and fixed rate
mortgage debt worth $56.7 million secured by its N.Y.-based
entertainment retail center.
Also, the company plans to pay early repayment costs, related
to the abovementioned mortgage debt. Moreover, it intends to
spend the remaining amount of the proceeds for future investments
and other corporate purposes. This, in particular, includes the
proposed acquisition of a company, which indirectly holds 11
We expect this underwritten public offering to help the
company attain financial flexibility and position it favorably to
pursue investment opportunities and acquisitions, which will go a
long way in enhancing its top-line.
Significantly, EPR has interests in assets in selected market
segments, with Entertainment, Recreation and Education being the
primary segments. Its investment in these segments totals over
Currently, EPR carries a Zacks Rank #2 (Buy). Other well
performing REITs include
Acadia Realty Trust
) which has the same rank as EPR.
ACADIA RLTY TR (AKR): Free Stock Analysis
CITIGROUP INC (C): Free Stock Analysis Report
EPR PROPERTIES (EPR): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
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