SAN FRANCISCO (AFX) - BRE Properties Inc., a real estate investment trust specializing in apartment communities in the western U.S., said Tuesday it has begun a private offering of $350 million in convertible senior notes due 2026.
The company said it will use the proceeds to pay down existing senior unsecured debt, buy back up to $75 million of its stock and for general corporate purposes. In the meantime, the company will use the proceeds to temporarily reduce borrowings under its unsecured credit facility.
The $350 million in notes will be convertible for cash or a combination of cash and BRE Properties stock, at the company's option. BRE Properties said it may issue an additional $52.5 million in notes to cover over-allotments.
BRE Properties shares fell 65 cents to close at $57.47 on the New York Stock Exchange.
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