Alexandria Real Estate Equities priced a $1 billion public offering of junior subordinated notes due 2057, adding a new fixed-income layer to its capital structure.
The company set the size of the deal at $1,000,000,000 in aggregate principal amount and priced the notes at 100.000% of principal. The securities carry an initial coupon of 7.250% a year through Feb. 15, 2032. After that date, the rate resets every five years to the five-year U.S. Treasury rate plus 2.889%, with a 7.250% floor.
The notes are due in 2057, giving the company a long-dated financing instrument. Alexandria said the notes will be junior subordinated unsecured obligations and will be fully and unconditionally guaranteed on a subordinated unsecured basis by Alexandria Real Estate Equities, L.P., its indirectly 100%-owned subsidiary.
The company said it expects to close the sale on or about Aug. 21, 2026.
Alexandria said it intends to use the proceeds for general corporate purposes, including working capital, repayment of debt, possible reductions in its unsecured senior line of credit and commercial paper borrowings, and selective property development, redevelopment or acquisition. As a result of these announcements, the company's shares have moved -0.58% on the market, and are now trading at a price of $48.14. For the full picture, make sure to review ALEXANDRIA REAL ESTATE EQUITIES, INC.'s 8-K report.
