Post Apartment Homes, L.P. Announces Closing of $250 million 3.375% Notes
ATLANTA -- November 07, 2012
Post Apartment Homes, L.P., the operating subsidiary of Post Properties, Inc.
(NYSE: PPS), announced today that it has closed on its previously announced
public offering of $250 million aggregate principal amount of senior unsecured
notes due 2022. Post Apartment Homes, L.P. intends to use the net proceeds
from this offering to redeem the remaining approximately $130.1 million in
principal outstanding of its 6.30% senior unsecured notes, which mature on
June 1, 2013 (“2013 Notes”), and pay premiums and related fees and expenses of
approximately $4.1 million in connection therewith and for general corporate
purposes, which may include future property acquisitions. The 2013 Notes are
expected to be redeemed on December 3, 2012.
Said Christopher Papa, EVP and CFO of Post Properties, “We were pleased that
we were able to capitalize on the recent upgrade of our credit ratings and
take advantage of a very favorable bond market to issue attractively priced
long-term unsecured debt capital. This offering allows us to repay higher
coupon debt and fund remaining debt maturities through 2014, while at the same
time maintaining sound credit metrics. As a result of this offering, the
Company is maintaining its full year 2012 earnings guidance, other than with
respect to the impact of a charge for the early extinguishment of debt of
approximately $0.08 per diluted share in connection with the offering.”
Wells Fargo Securities, J.P. Morgan and SunTrust Robinson Humphrey acted as
joint book-running managers with PNC Capital Markets LLC, Mitsubishi UFJ
Securities, BB&T Capital Markets, Capital One Southcoast, TD Securities, US
Bancorp and The Williams Capital Group, L.P. acting as co-managers.
This press release does not constitute a notice of redemption under the
indenture governing the 2013 Notes nor an offer to tender for, or purchase,
any 2013 Notes or any other security. This press release does not constitute
an offer to sell or a solicitation of an offer to buy the securities described
herein, nor shall there be any sale of these securities in any state or
jurisdiction in which such an offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
Certain statements made in this press release may constitute “forward-looking
statements” within the meaning of the federal securities laws. Statements
regarding future events and developments and the Company’s future performance,
as well as management’s expectations, beliefs, plans, estimates or projections
relating to the future, are forward-looking statements within the meaning of
these laws. Examples of such statements in this press release include,
expectations regarding the use of proceeds from the offering, the anticipated
redemption of the 2013 Notes and expectations regarding full year 2012
earnings and the impact of the charge for the early extinguishment of debt.
All forward-looking statements are subject to certain risks and uncertainties
that could cause actual events to differ materially from those projected.
Management believes that these forward-looking statements are reasonable;
however, you should not place undue reliance on such statements. These
statements are based on current expectations and speak only as of the date of
such statements. There are a number of important factors that could cause the
Company’s actual results and its expectations to differ materially from those
described in the Company’s forward-looking statements, including those
included under the caption “Risk Factors” in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2011, and as may be discussed in
subsequent filings with the Securities and Exchange Commission. The risk
factors discussed in the Form 10-K under the caption “Risk Factors” are
specifically incorporated by reference into this press release. The Company
undertakes no obligation to publicly update or revise any forward-looking
statement, whether as a result of future events, new information or otherwise.
About Post Properties
Post Properties, Inc., founded more than 40 years ago, is a leading developer
and operator of upscale multifamily communities. The Company’s mission is
delivering superior satisfaction and value to its residents, associates, and
investors, with a vision of being the first choice in quality multifamily
living. Operating as a real estate investment trust (“REIT”), the Company
focuses on developing and managing Post® branded resort-style garden and high
density urban apartments. Post Properties is headquartered in Atlanta,
Georgia, and has operations in ten markets across the country.
Post Properties has interests in 22,218 apartment units in 60 communities,
including 1,471 apartment units in four communities held in unconsolidated
entities and 2,046 apartment units in seven communities currently under
development or in lease-up. The Company is also selling luxury for-sale
condominium homes in two communities through a taxable REIT subsidiary.
Post Properties, Inc.
Chris Papa, 404-846-5028
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