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Weingarten Sells $200 Mil in Unsecured Notes

HOUSTON-Weingarten Realty Investors has completed the sale of $200 million in 10-year unsecured notes in a bid that keeps the door open for more acquisitions. The bond sale will be used to reduce a $350-million revolving credit line.

By Jennifer Brenner Andrade | Updated on July 17, 2001

HOUSTON-Houston-based Weingarten Realty Investors has sold $200 million in 10-year unsecured notes. Weingarten CFO Steve Richter tells GlobeSt.com that the net proceeds will be used to pay down a $350-million revolving line of credit.

Richter says the transaction was completed as a long-term solution to a need to free up credit for additional real estate purchases and other needs. Richter says the company has no immediate plans to make a purchase.

Richter called the transaction “a great execution.” The notes have a 7% coupon and were issued at 99.86 cents on the dollar to yield 7.02% or 1.78% more than similar maturity US Treasuries. According to Weingarten, the REIT hedged exposure to rising interest prior to the bond sale, which resulted in a 6.91% net effective rate.

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