American Assets Trust, Inc. Raises $525 Million with New Notes

Author: Ryan Hughes Updated: 09-10-2024 04:45 PM

American Assets Trust, Inc. Prices $525 Million Senior Notes Offering

American Assets Trust, Inc. (NYSE: AAT) has recently made significant strides in the financial market by announcing a public offering of $525 million in 6.150% senior unsecured notes maturing in 2034. This strategic move is set to bolster the company’s financial position while enabling new growth opportunities.

Details of the Offering

The senior notes were priced at an attractive 99.671% of their principal amount, indicating a solid interest from investors. These notes are scheduled to mature on October 1, 2034, with the offering expected to settle shortly, pending usual closing conditions. With the company’s operating partnership guaranteeing the notes, investors can expect a robust backing.

Utilization of Proceeds

American Assets Trust plans to use the proceeds from this offering judiciously. Approximately $100 million will go towards repaying the operating partnership’s Series B Senior Guaranteed Notes at or before their maturity. An additional $100 million is earmarked for the Series C Senior Guaranteed Notes. Furthermore, about $100 million is set to pay down outstanding borrowings under the revolver loan within the partnership's credit facility. The remaining funds will be dedicated to working capital and other general corporate purposes, ensuring that the company remains well-positioned for future endeavors.

Background of American Assets Trust

Founded over 55 years ago, American Assets Trust, Inc. is a self-administered, full-service real estate investment trust (REIT) headquartered in Southern California. The company specializes in the acquisition, development, and management of high-quality office, retail, and residential properties across the United States, particularly in dynamic markets with high barriers to entry.

Company Portfolio Highlights

With a well-diversified portfolio, American Assets Trust boasts approximately 4.1 million rentable square feet of office space and 3.1 million rentable square feet of retail space. Additionally, it owns a mixed-use property consisting of retail space and a hotel, alongside 2,110 multifamily units, underscoring its commitment to delivering quality living and working environments.

Market Position and Future Prospects

American Assets Trust is strategically positioned to navigate the complex landscape of the real estate market. With its significant experience and established relationships in prime markets, the company is well-equipped to manage potential risks and capitalize on emerging opportunities.

Commitment to Stakeholders

The company recognizes the importance of maintaining transparency with its investors and stakeholders. As it moves forward with this offering and its strategic plans, American Assets Trust remains dedicated to providing updates, ensuring investors are informed about key developments that may affect their interests.

Frequently Asked Questions

1. What is the purpose of the $525 million senior notes offering?

The offering aims to refinance existing debt and fund corporate purposes.

2. When do the senior notes mature?

The senior notes are scheduled to mature on October 1, 2034.

3. Who are the joint book-running managers for this offering?

Wells Fargo Securities, Mizuho, and PNC Capital Markets LLC are the managers for this offering.

4. How does American Assets Trust maintain its market position?

American Assets Trust leverages its extensive experience and strong market relationships to navigate challenges and embrace opportunities.

5. Is American Assets Trust focused on specific markets?

Yes, the company primarily operates in high-barrier markets in Southern and Northern California, Texas, Washington, Oregon, and Hawaii.

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