Equity Office Properties Trust’s EOP Operating Ltd Partnership has issued $US1 billion of 4.75% senior unsecured notes due 15 March 2014. Including all offering expenses & the settlement of 2 forward-starting swaps, the all-in effective rate of the unsecured notes is 5.54%. Equity Office then entered into $US1 billion of fixed-to-floating interest rate swaps due on the same date, giving an effective rate for it on the notes of Libor plus 53 basis points.
Equity Office will use the net $US990 million to repay outstanding balances under its $US1 billion revolving credit facility and to settle 2 swaps.
These securities have been rated Baa1 by Moody’s, BBB+ by Standard & Poors and BBB+ by Fitch.
Equity Office is the biggest US real estate investment trust, with a portfolio of 11.3 million mÂ² in 683 buildings.
Website: Equity Office Properties Trust