Issuer:
|
AMB Property, L.P. | |
Guarantor:
|
AMB Property Corporation | |
Securities:
|
4.500% Notes due 2017 | |
Size:
|
$300,000,000 aggregate principal amount | |
Maturity:
|
August 15, 2017 | |
Coupon (Interest Rate):
|
4.500% | |
Yield to Maturity:
|
4.682% | |
Spread to Benchmark Treasury:
|
237.5 basis points | |
Benchmark Treasury:
|
2.375% notes due July 31, 2017 | |
Benchmark Treasury Price and Yield:
|
100-14, 2.307% | |
Interest Payment Dates:
|
February 15 and August 15 of each year, beginning on February 15, 2011 | |
Redemption Provision:
|
Treasury Rate plus 37.5 basis points | |
Price to Public:
|
98.921% | |
Trade Date:
|
August 4, 2010 | |
Settlement Date:
|
August 9, 2010 | |
CUSIP:
|
00163M ALB | |
Use of Proceeds:
|
We intend to use approximately $205 million of the net proceeds to reduce the U.S. dollar borrowings under our $425 million multi-currency senior unsecured term loan facility. As of August 1, 2010, the weighted average interest rate of these U.S. dollar borrowings was approximately 3.3125%. The $425 million multi-currency senior unsecured term loan facility matures on October 15, 2012. We used the borrowings under our multi-currency senior unsecured term loan facility for general corporate purposes. We intend to use approximately $65.8 million of the net proceeds to repay the outstanding amount under our secured mortgage instrument with an interest rate of 8.59%, which matures on August 10, 2010. We intend to use approximately $10 million of the net proceeds to repay the U.S. dollar borrowings under our $550 million unsecured revolving credit facility. As of August 1, 2010, the weighted average interest rate of these U.S. dollar borrowings was 0.7375%. The $550 million unsecured revolving credit facility matures on June 1, 2011. We used the borrowings under our $550 million credit facility for general corporate purposes. We intend to use any remaining net proceeds for general corporate purposes, which may include equity investments in co-investment funds, acquisitions of properties, portfolios of properties or interests in property-owning or real estate-related entities; development, redevelopment or value-added conversion activities; the repayment of indebtedness (which may include intercompany indebtedness); the redemption or other repurchase of outstanding securities; loans to affiliated entities; capital expenditures and increasing its working capital. Pending such use of the net proceeds, we may use the net proceeds to invest in short-term securities. |