BRE Properties sells $50 million of 7.20% senior unsecured notes.SAN FRANCISCO--(BUSINESS WIRE)--June 23, 1997--BRE Properties Inc. (NYSE NYSE See: New York Stock Exchange :BRE (Business Rules Engine) Software that automates policies and procedures within an organization, whether legal, internal or operational. The use of a rules engine (BRE) requires placing the company rules in an external repository that can be easily reviewed rather than ) today announced the closing of a $50 million issue of 7.20% senior unsecured notes due June 15, 2007. Proceeds from the offering will be used to repay borrowings under the company's lines of credit and for other general corporate purposes, including acquisitions of apartment communities. "One of BRE's core business strategies is the maintenance of a strong balance sheet," said Frank C. McDowell, BRE's president and chief executive officer. "This debt transaction, coupled with the $91.2 million in proceeds from BRE's common stock offering last month, provides the company with substantial financial flexibility to support future growth." The $50 million notes were rated BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. by Standard & Poor's, Baa2 by Moody's, and BBB+ by Duff & Phelps. The offering was underwritten by Morgan Stanley Dean Witter, BancAmerica Securities Inc., Merrill Lynch & Co., and Salomon Brothers Inc. Requests for copies of the final Prospectus Final Prospectus A legal document stating the price of a newly issued security, the delivery date, and other facts that are important for investors. Notes: The final prospectus must be given to every investor who purchases a new issue of registered securities. Supplement can be obtained by contacting Morgan Stanley Dean Witter's Prospectus Department at 212/761-4000. In other news, BRE announced the recent sale of a 60-unit apartment community in Phoenix, with net sales proceeds of approximately $1.65 million. "BRE's investment strategy includes the selective sales of properties which we believe have reached maximum cash-flow growth potential," said Jay W. Pauly, BRE's chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "Investors can expect to see BRE reinvest such proceeds into assets we believe have greater long-term cash flow growth prospects." BRE Properties Inc., headquartered in San Francisco, is a self-administered, self-managed and fully integrated real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) focusing on the ownership and management of multifamily properties in the Western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . BRE owns and operates 54 apartment communities totaling 12,955 units in nine major markets in California, Arizona, Washington, Oregon and Nevada. CONTACT: BRE Properties Inc., San Francisco Lauren L. Barr, 415/445-6523 |
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