Hudson Pacific (HPP) Prices $400M Senior Notes Offering
Zacks Investment Research | Sep 25, 2017 09:13PM ET
Hudson Pacific Properties, Inc.’s (NYSE:HPP) operating partnership — Hudson Pacific Properties, L.P. — has announced the pricing of an underwritten public offering of senior notes valued at $400 million.
The offering comprises 3.950% senior unsecured obligations of the operating partnership and will mature on Nov 1, 2027. It will be unconditionally and fully guaranteed by the company.
The notes will be sold to the public at a price of 99.815% of par value, carrying a coupon rate of 3.950%. The offering is anticipated to close on Oct 2, 2017, in compliance with customary closing conditions.
The operating partnership plans to utilize the net proceeds of this offering to initially settle a five-year term loan aggregating $150 million due in April 2020. The remaining proceeds will thereafter be used to repay amounts outstanding under the operating partnership’s revolving credit facility or for general corporate purposes.
Hudson Pacific Properties, Inc. is a full-service, vertically integrated real estate company focused on owning, operating and acquiring office properties, and media and entertainment properties in select growth markets, primarily in Northern and Southern California. The company is headquartered in Los Angeles, CA.
The funds raised through this offering will help the company pursue expansion plans in the near future. This, along with its robust operating platform, will likely enable it to execute strategic priorities and drive growth in net asset value. Moreover, we believe the senior notes offering will bring down the company’s cost of capital, which will in turn strengthen the balance sheet and fuel growth.
Shares of Hudson Pacific have underperformed the Zacks Investment Research
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