WPC
W P Carey INC
NYSE
8-K: W. P. Carey Inc. Announces $400 Million Senior Notes Offering
Sentiment:
Debt Offering Announcement
20 June 2024 4:32 PM
W. P. Carey Inc. has entered into an agreement to issue $400 million in senior notes due 2034, with the proceeds intended for general corporate purposes.
Capital raise
The document details a $400 million offering of 5.375% Senior Notes due 2034.
The company intends to use the net proceeds for general corporate purposes, including funding potential future investments and repaying indebtedness.
Summary
- W. P. Carey Inc. has agreed to sell $400 million of 5.375% Senior Notes due in 2034.
- The underwriting agreement was made with BofA Securities, Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, and U.S. Bancorp Investments, Inc. as representatives of the underwriters.
- The offering is expected to close on June 28, 2024, subject to standard closing conditions.
- The company plans to use the net proceeds for general corporate purposes, including funding potential investments and repaying debt.
- The notes were priced at 98.193% of the principal amount.
- The notes will pay interest semi-annually on June 30 and December 30, starting December 30, 2024.
- The notes have a make-whole call option prior to March 30, 2034, and a par call option on or after March 30, 2034.
Sentiment
Score: 7
Explanation: The document reflects a routine financial transaction for a company of this type. The terms of the offering are standard, and the use of proceeds is typical. The sentiment is neutral to slightly positive as it provides the company with additional capital.
Positives
- The company has secured $400 million in financing through the issuance of senior notes.
- The funds will be used for general corporate purposes, providing flexibility for future investments and debt management.
- The offering is expected to close relatively quickly, on June 28, 2024.
Risks
- The company is subject to customary closing conditions, which could potentially delay or prevent the offering from closing.
- The company is exposed to interest rate risk, as the notes have a fixed interest rate of 5.375%.
Future Outlook
The company intends to use the net proceeds from this offering for general corporate purposes, including to fund potential future investments and to repay indebtedness.
Industry Context
This offering is a common financing activity for REITs like W. P. Carey, which often use debt to fund acquisitions and development projects. The issuance of senior notes is a typical method for raising capital in the real estate sector.
Comparison to Industry Standards
- The 5.375% coupon rate is within the typical range for investment-grade corporate debt at the time of issuance.
- The use of proceeds for general corporate purposes, including acquisitions and debt repayment, is standard practice for REITs.
- The involvement of major underwriters like BofA Securities, J.P. Morgan, PNC, and U.S. Bancorp is typical for a debt offering of this size and nature.
- The make-whole call provision is a common feature in corporate debt issuances, providing protection to investors while allowing the company flexibility in managing its debt.
Stakeholder Impact
- Shareholders may see a positive impact from the company's ability to fund future investments and manage debt.
- Creditors will see an increase in the company's debt obligations.
- Potential investors in the notes will receive a fixed income stream with a defined maturity date.
Next Steps
- The offering is expected to settle on June 28, 2024.
- The company will use the net proceeds for general corporate purposes, including potential investments and debt repayment.
Key Dates
- 2014-03-14: Date of the Base Indenture.
- 2022-05-02: Date the automatic shelf registration statement on Form S-3 was filed with the SEC.
- 2024-06-18: Date of the underwriting agreement and pricing of the senior notes.
- 2024-06-28: Expected settlement date of the offering.
- 2024-06-30: Stated maturity date of the notes and first interest payment date.
- 2024-12-30: First interest payment date.
- 2034-03-30: Date after which the notes can be called at par.
- 2034-06-30: Maturity date of the senior notes.
Keywords
Senior Notes, Debt Offering, Underwriting Agreement, Capital Markets, Fixed Income, Corporate Finance, W. P. Carey Inc., REIT
WPC
W P Carey INC
NYSE
Sector: Real Estate
Filings with Classifications
Capital raise
1 May 2025 5:22 PM
Capital Raising Announcement
- W. P. Carey Inc. has entered into an Equity Sales Agreement to offer and sell shares of its common stock, with an aggregate offering price of up to $1,250,000,000.
- The shares may be offered and sold from time to time through various agents.
- W. P. Carey may also sell shares to an agent as principal for its own account.
Worse than expected
30 April 2025 4:08 PM
Quarterly Report
- Net income attributable to W. P. Carey decreased due to higher losses from foreign debt remeasurement and increased allowance for credit losses.
Better than expected
1 April 2025 5:10 PM
Credit Agreement Amendment
- The amendment extends the maturity of a significant €500 million term loan by three years, improving the company's debt maturity profile.
- It introduces the potential for lower borrowing costs through a new pricing tier linked to higher credit ratings.
- The removal of specific spread adjustments on USD SOFR and CAD CORRA borrowings offers potential interest savings.
Worse than expected
12 February 2025 4:27 PM
Annual Results
- Total revenues decreased in 2024 as compared to 2023, primarily due to lower lease revenues and lower operating property revenues.
- Net income attributable to W. P. Carey decreased in 2024 as compared to 2023, primarily due to lower gain on sale of real estate, non-cash unrealized losses recognized on investment in shares of Lineage, and the impact of the Spin-Off and the Office Sale Program.
- AFFO decreased in 2024 as compared to 2023, primarily due to the impact of the Spin-Off and Office Sale Program.
Capital raise
12 February 2025 4:27 PM
Annual Results
- The company may access the capital markets through additional debt (denominated in both U.S. dollars and euros) and equity offerings, as well as term loans and other bank debt.
- The company may use existing cash resources, available capacity under our Senior Unsecured Credit Facility, proceeds from term loans or other bank debt, proceeds from dispositions of properties (including the Office Sale Program), and the issuance of additional debt or equity securities, such as issuances of common stock through our ATM Program, in order to meet our short-term and long-term liquidity needs.
Worse than expected
11 February 2025 4:10 PM
Earnings Release
- Net income attributable to W. P. Carey decreased by 67.4% in the fourth quarter compared to the same period in 2023.
- Full year AFFO per diluted share decreased by 9.3% from $5.18 in 2023 to $4.70 in 2024.
- Dividends declared during 2024 decreased by 14.2% compared to 2023.
- Revenues, including reimbursable costs, for the 2024 full year totaled $1.58 billion, down 9.2% from $1.74 billion for the 2023 full year.
Capital raise
13 November 2024 4:28 PM
Debt Offering Announcement
- W. P. Carey Inc. is raising $600 million through the issuance of 3.700% Senior Notes due in 2034.
- The offering is being underwritten by Barclays Bank PLC, BNP PARIBAS, J.P. Morgan Securities plc, and Bank of Montreal, London Branch.
Worse than expected
30 October 2024 4:06 PM
Quarterly Report
- The company's revenue, net income, and AFFO all decreased compared to the same period last year, indicating worse than expected results.
Worse than expected
29 October 2024 4:10 PM
Quarterly Report
- The company's net income and AFFO per share decreased compared to the same quarter last year, indicating worse results.
Worse than expected
15 October 2024 6:10 AM
Current Report
- The bankruptcy filing of a major tenant is generally considered a negative event that could impact future revenue.
Worse than expected
31 July 2024 4:06 PM
Quarterly Report
- Total revenues decreased due to lower lease revenues and operating property revenue.
- Net income attributable to W. P. Carey decreased due to the impact of the spin-off, asset sales, and impairment charges.
- AFFO decreased due to the impact of the spin-off, asset sales, lease restructurings and property vacancies.
Worse than expected
30 July 2024 4:06 PM
Quarterly Report
- The company's AFFO per diluted share decreased by 14.0% compared to the same quarter last year.
- The company lowered its full-year AFFO guidance by two cents per diluted share.
- Revenues decreased by 13.9% compared to the same quarter last year.
Capital raise
28 June 2024 4:15 PM
Debt Issuance Announcement
- W. P. Carey Inc. has raised $400 million through the issuance of 5.375% Senior Notes due 2034.
- The proceeds from this offering will be used for general corporate purposes, including potential investments and debt repayment.
Capital raise
20 June 2024 4:32 PM
Debt Offering Announcement
- The document details a $400 million offering of 5.375% Senior Notes due 2034.
- The company intends to use the net proceeds for general corporate purposes, including funding potential future investments and repaying indebtedness.
Capital raise
16 May 2024 4:10 PM
Debt Offering Announcement
- W. P. Carey Inc. has raised €650 million through the issuance of 4.250% Senior Notes due 2032.
- The offering was made pursuant to the company's automatic shelf registration statement and a final prospectus supplement.
Capital raise
8 May 2024 5:25 PM
Debt Offering Announcement
- W. P. Carey Inc. is raising $650 million through the issuance of senior notes.
- The notes are being offered to the public through an underwritten offering.
- The proceeds will be used for general corporate purposes and to repay existing debt.
Capital raise
1 May 2024 4:09 PM
Quarterly Report
- The company may use the at-the-market program (ATM Program) to issue additional equity securities.
- The company may also access the capital markets through additional debt offerings.
Worse than expected
1 May 2024 4:09 PM
Quarterly Report
- The company's revenue and net income decreased year-over-year, indicating worse performance compared to the previous year.
- AFFO also decreased, which is a key metric for REIT performance, suggesting a decline in operational profitability.
Worse than expected
30 April 2024 4:04 PM
Quarterly Report
- Net income and AFFO per share were down compared to the same period last year, indicating worse results.
Capital raise
9 February 2024 4:56 PM
Annual Results
- The company may access the capital markets through additional debt and equity offerings, as well as term loans and other bank debt.
- The company may issue common stock through its ATM Program.
Worse than expected
9 February 2024 4:56 PM
Annual Results
- The company's net income from Investment Management decreased due to the cessation of fees from CPA:18 Global.
- The company's fourth quarter dividend of $0.860 per share reflects a lower payout ratio.
Worse than expected
9 February 2024 7:39 AM
Quarterly Report
- The company's AFFO per diluted share for the fourth quarter and full year 2023 decreased compared to the previous year.
- The company's 2024 AFFO guidance is lower than the 2023 full year AFFO.
- Net income attributable to W. P. Carey decreased by 31.1% in the fourth quarter of 2023 compared to the same period in 2022.
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