United Dominion to Buy Back $228M in Outstanding Bonds

RICHMOND, VA-National multifamily real estate investment trust United Dominion Realty Trust Inc. has announced a company offering to purchase back in cash as much as $228 million of its outstanding debt securities. The two series of debt securities include $103.1 million of its 7.95% notes scheduled to mature in July of 2006, and $124.9 million of its 8.4% notes, which are due in September of 2024. Offers began Sept. 17–with JP Morgan Securities Inc. serving as manager–and are scheduled to expire on Sept. 30.

“We saw an opportunity to go through and improve the balance sheet of the company–improve our fixed charge cover ratio and lower our interest costs–by pulling in some of these high coupon bonds,” UDRT executive vice president and treasurer Ella S. Neyland explains to GlobeSt.com. The company turns 30 this year. “We have full availability on our revolving line of credit. We have a $475 million line of credit, so we’ve got the fire power to take advantage of some of these lower interest rates.” UDRT closed on a $400 million Fannie Mae revolving credit facility in December of last year, and in March of this year, the company closed on a $72 million Freddie Mac line of revolving credit.