Equity Office Issues $1 Billion of 10-Year Senior Unsecured Notes.Business Editors CHICAGO--(BUSINESS WIRE)--March 26, 2004 Equity Office Properties Trust Equity Office Properties Trust, headquartered in Chicago, Illinois, is the largest owner of office buildings in the United States. It was formed in 1976 by Samuel Zell [1] and in February 2007, was acquired by the Blackstone Group for $23 billion plus the assumption of (NYSE NYSE See: New York Stock Exchange :EOP EOP Educational Opportunity Program (California State University) EOP Executive Office of the President EOP Equity Office Properties Trust (ticker) EOP Emergency Operations Plan EOP Earth Orientation Parameters ) announced today that EOP Operating Limited Partnership has issued $1 billion of 4.75% senior unsecured notes due March 15, 2014. Including all offering expenses and the settlement of two forward-starting swaps, the all-in effective rate of the unsecured notes is 5.54%. Following the pricing of the notes, Equity Office entered into $1 billion of fixed-to-floating interest rate swaps due March 15, 2014. As a result of the swaps, the effective rate on the notes is LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 53 basis points. The notes are guaranteed by Equity Office Properties Trust. Total cash proceeds, net of offering expenses, were approximately $990.4 million. Net proceeds have been used to repay outstanding balances under the company's $1 billion revolving credit facility, and to settle two forward-starting interest rate swaps. In addition, as a result of EOP's issuance of these unsecured notes, a 364-day credit facility, entered into in December 2003, has been canceled. These securities have been rated Baa1 by Moody's, 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 & Poors and BBB+ by Fitch. Citgroup Global Markets Inc. and J.P. Morgan Securities Inc. were Joint-Book Running Managers. Equity Office Properties Trust (NYSE:EOP), operating through its various subsidiaries and affiliates, is the nation's largest publicly held office building owner and manager with a portfolio of 683 buildings comprising 122.1 million square feet in 18 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . Equity Office has an ownership presence in 27 Metropolitan Statistical Areas (MSAs) and in 124 submarkets, enabling it to provide wide range of office solutions for local, regional and national customers. For more company information, visit the Equity Office website at www.equityoffice.com. |
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