SAN FRANCISCO, March 6 /PRNewswire-FirstCall/ -- BRE Properties, Inc., today announced it priced a $300 million offering of senior unsecured notes. Interest on the notes is payable semiannually on March 15 and September 15; the notes will mature on March 15, 2017. These 10-year notes, rated Baa2 by Moody's Investor Service and BBB+ by Fitch, Inc., were issued at 99.86% of par value, with a coupon of 5.50%. The company intends to use the net proceeds from the offering of approximately $297.56 million for general corporate purposes, which may include the repayment of debt, redemption of equity securities, funding for development activities and financing for acquisitions and, pending such use, to temporarily reduce borrowings under its unsecured credit facility. Settlement is scheduled for March 13, 2007.
BRE offered the senior unsecured notes under its existing shelf registration statement filed with the Securities and Exchange Commission. Morgan Stanley and RBS Greenwich Capital acted as joint book-running managers, and KeyBanc Capital Markets, PNC Capital Markets LLC and Scotia Capital acted as co-managers. Copies of the prospectus supplement can be obtained from: Greenwich Capital Markets, Inc. at 1.866.884.2071 or Morgan Stanley & Co. Incorporated at 1.800.718.1649.
This news 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 in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state.
About BRE Properties
BRE Properties -- a real estate investment trust -- develops, acquires and manages apartment communities convenient to its residents' work, shopping, entertainment and transit in supply-constrained Western U.S. markets. BRE directly owns and operates 81 apartment communities totaling 22,680 units in California, Washington and Arizona. The company currently also has nine other properties in various stages of development and construction, totaling 2,194 units, and joint venture interests in nine additional apartment communities, totaling 2,672 units. As of 12/31/06.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, this news release contains forward-looking statements regarding the expected amount and use of proceeds from the offering, and is based on the company's current expectations and judgment. You should not rely on these statements as predictions of future events because there is no assurance that the events or circumstances reflected in the statements can be achieved or will occur. Forward-looking statements are identified by words such as "believes," "expects," "may," "will," "should," "peeks" "approximately," "intends," "plans," "pro forma," "estimates," or "anticipates" or their negative form or other variations, or by discussions of strategy, plans or intonations. The following factors, among others, could affect actual results and future events: defaults or non-renewal of leases, increased interest rates and operating costs, failure to obtain necessary outside financing, difficulties in identifying properties to acquire and in affecting acquisitions, failure to successfully integrate acquired properties and operations, inability to dispose of assets of assets that no longer meet our investment criteria under applicable terms and conditions, risks and uncertainties affecting property development and construction (including construction delays, cost overruns, liability to obtain necessary permits and public opposition to such activities), failure to qualify as a real estate investment trust under the Internal Rescue Code of 1986, as amended, and increases in real property tax rates. The Company's success also depends on general economic trends, including interest rates, tax laws, governmental regulation, legislation, population changes and other factors, including those risk factors discussed in the section entitled "Risk Factors" in the Company's most recent Annual Report on Form 10-K as they may be updated from time to time by the Company's subsequent filings with the Securities and Exchange Commission. Do not rely solely on forward-looking statements, which only reflect management's analysis. The company assumes no liability to update this information. For more details, please refer to the company's SEC filings, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q.
