WPC
W P Carey INC
NYSE
8-K: W. P. Carey Inc. Prices $650 Million Senior Notes Offering
Sentiment:
Debt Offering Announcement
8 May 2024 5:25 PM
W. P. Carey Inc. has successfully priced a public offering of $650 million in senior notes due 2032, with the proceeds intended for general corporate purposes and debt repayment.
Capital raise
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.
Summary
- W. P. Carey Inc. has priced a public offering of $650 million aggregate principal amount of 4.250% Senior Notes due 2032.
- The notes were priced at 99.526% of the principal amount.
- The offering is expected to settle on May 16, 2024, subject to customary closing conditions.
- The company intends to use the net proceeds for general corporate purposes and to repay existing debt.
- This includes amounts outstanding under its $2.0 billion unsecured revolving credit facility and its 2.25% Senior Notes due July 2024.
- The notes will pay interest annually on July 23, starting in 2024.
- The notes are intended to be listed on the Official List of the Irish Stock Exchange plc, trading as Euronext Dublin, and traded on the Global Exchange Market of Euronext Dublin.
Sentiment
Score: 7
Explanation: The sentiment is neutral to positive. The company is executing a standard debt offering, which is a normal part of its financial management. The successful pricing of the notes and the intention to use the proceeds for debt repayment are positive indicators of financial health and planning. However, the document also includes standard risk disclosures, which temper the overall positive sentiment.
Positives
- The company successfully raised $650 million through a senior notes offering.
- The funds will be used to refinance existing debt and for general corporate purposes, which can improve the company's financial flexibility.
- The notes are intended to be listed on Euronext Dublin, potentially increasing their visibility and accessibility to investors.
Risks
- The document mentions risks related to fluctuating interest rates, inflation, pandemics, geopolitical crises, and other conflicts that could adversely affect the company's business and financial condition.
- The company's ability to remain qualified as a REIT is subject to ongoing requirements and could be impacted by changes in tax laws or the company's operations.
Future Outlook
The company intends to use the net proceeds from the offering for general corporate purposes and to repay indebtedness, including amounts outstanding under its unsecured revolving credit facility and its 2.25% Senior Notes due July 2024. The company also intends to maintain its REIT status.
Industry Context
This announcement is typical for a REIT seeking to manage its capital structure and refinance debt. The issuance of senior notes is a common method for REITs to raise capital and manage their debt maturities. The listing on Euronext Dublin is likely aimed at attracting a broader base of international investors.
Comparison to Industry Standards
- The issuance of senior unsecured notes is a common practice for REITs like W. P. Carey to manage their capital structure.
- The 4.250% coupon rate is within the typical range for investment-grade corporate debt at the time of issuance, although specific rates vary based on market conditions and the issuer's credit rating.
- Other REITs such as Realty Income (O) and Prologis (PLD) also frequently access the debt markets to fund acquisitions and refinance existing debt.
- The use of proceeds to repay a revolving credit facility and maturing debt is a standard practice to maintain financial flexibility and manage debt maturities.
- Listing on Euronext Dublin is a common strategy for companies seeking to attract international investors, similar to other global REITs.
Stakeholder Impact
- Shareholders: The offering provides the company with capital and flexibility, which could be beneficial for long-term growth.
- Creditors: The repayment of existing debt will reduce the company's leverage and improve its credit profile.
- Potential Investors: The new notes offer a fixed income investment opportunity with a defined maturity and interest rate.
Next Steps
- The offering is expected to settle on May 16, 2024.
- The company will use the net proceeds for general corporate purposes and to repay existing debt.
- The company will seek to list the notes on Euronext Dublin.
Key Dates
- 2022-05-02: Date of the Companys automatic shelf registration statement on Form S-3.
- 2024-05-07: Date of the underwriting agreement and pricing of the Senior Notes.
- 2024-05-09: Date of the final prospectus supplement relating to the Senior Notes.
- 2024-05-16: Expected settlement date of the offering.
- 2024-07-23: First interest payment date for the Senior Notes.
Keywords
Senior Notes, Debt Offering, Capital Markets, REIT, W. P. Carey, Euronext Dublin, Debt Repayment, Corporate Finance
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.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.