Hudson Pacific's $200M Note Tender Oversubscribed 2.7x, Proration Set
HPP has more than doubled off its 52-week low of $5.26.
Summary
Hudson Pacific's tender offer for up to $200M of its 2027 and 2028 senior notes drew $537.9M in tenders, 2.7x the target. Both series were oversubscribed, forcing proration at 35.1% for the 3.950% notes due 2027 and 39.9% for the 5.950% notes due 2028. The company will pay $980.00 and $991.25 per $1,000 principal, respectively, funded with $95M cash and $105M revolver borrowings. Settlement is October 14. Strong demand at near-par pricing signals bondholder confidence in the credit, and the company plans to repay revolver borrowings with proceeds from the anticipated Skyport Plaza sale.
At the time of this announcement, HPP was trading at $11.97 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $664.1M. The 52-week trading range was $5.26 to $19.50. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: BusinessWire.