Camden Property Trust Prices $200 Million Senior Unsecured Notes and Amends 8.5% Series B Preferred Units.Business Editors/Real Estate Writers HOUSTON--(BUSINESS WIRE)--Dec. 2, 2003 Camden Property Trust (NYSE NYSE See: New York Stock Exchange :CPT CPT See: Carriage Paid To ) today announced that it priced a $200 million offering of senior unsecured notes under its existing shelf registration on Dec. 1, 2003. These ten-year notes, rated Baa2 by Moody's and 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 and Fitch, were issued at 99.424% of par value with a coupon of 5.375%. Interest on the notes is payable semi-annually on June 15 and Dec. 15, and the notes will mature on Dec. 15, 2013. The Company expects to use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $198 million to reduce the balance outstanding under its unsecured credit facility. Settlement is scheduled for Dec. 4, 2003. In addition, Camden announced an amendment to its $100 million 8.5% Series B Cumulative Redeemable Perpetual Preferred Operating Units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon . Effective Dec. 1, 2003, distributions on the Series B preferred units will accrue at a rate of 7.0% per annum Per annum Yearly. , the units will not be redeemable until Dec. 2, 2008, and the holders will have additional voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. with respect to specified transactions. The Company will not record any charges to earnings in connection with this modification. "We are pleased to have completed both of these transactions at very attractive long-term rates," said Richard Campo, chairman and chief executive officer. "Part of our four-point strategy for 2004 is to refinance $400 million of debt and preferred units at rates 100 basis points or more below the existing weighted average rate of 7.5%. With the successful completion of $300 million in refinancings, we are now well on our way to achieving that goal." In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Camden operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. Camden Property Trust is a real estate company engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities. Camden owns interests in and operates 144 properties containing 51,344 apartment homes in the Sunbelt and Midwestern markets from Florida to California. Upon completion of one property under development, the Company's portfolio will increase to 51,882 apartment homes in 145 properties. For additional information, please contact Camden's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department at 800-922-6336 or 713-354-2787 or access our Web site at http://www.camdenliving.com. |
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