Tanger Factory Outlet Centers Inc. recently revealed that its operating partnership, Tanger Properties Limited Partnership, has agreed to sell $300 million of 3.875% senior notes due 2027 in an underwritten public offering through Wells Fargo Securities, SunTrust Robinson Humphrey and US Bancorp as joint book-running managers. The notes were priced at 99.579% of the principal amount to yield 3.926% to maturity.
According to a prepared statement, the notes will pay interest semi-annually at a rate of 3.875% per annum and mature on July 15, 2027. The estimated net proceeds from the offering, after deducting the underwriting discount and offering expenses, are expected to be approximately $295.9 million.
Tanger intends to use the net proceeds from the sale of the notes, together with borrowings under its unsecured lines of credit, to redeem all of its 6.125% senior notes due 2020, approximately $300 million in aggregate principal amount outstanding.
The senior notes due 2020 are currently redeemable at par plus a “make-whole” premium. This release does not constitute a notice of redemption of the senior notes due 2020, and as of the date hereof, no such notice of redemption has been issued, the release says.
Closing of the sale of the notes is expected to occur on July 3, 2017, subject to the satisfaction of customary closing conditions.
Tanger Factory Outlet Centers Inc. is a publicly-traded REIT headquartered in Greensboro, NC, that presently operates and owns, or has an ownership interest in, a portfolio of 43 upscale outlet shopping centers in 22 states coast to coast and in Canada, totaling approximately 14.8 million square feet leased to over 3,100 stores operated by more than 500 different brand name companies.