Federal Realty Announces Upsized Pricing of $425 Million of Exchangeable Senior Notes
Summary
On or after July 15, 2028, the notes will be exchangeable at the option of the holders at any time prior to the close of business on the second scheduled trading day preceding the Maturity Date. The capped call transactions cover, subject to customary adjustments, the number of Federal Realtys common shares that initially underlie the notes.The cap price of the capped call transactions will initially be approximately $143.26 per share, which represents a premium of approximately 40% over the last reported sale price of Federal Realtys common shares of $102.33 on the New York Stock Exchange on January 8, 2024, and is subject to certain adjustments under the terms of the capped call transactions.The capped call transactions are expected generally to reduce the potential dilution to Federal Realtys common shares upon exchange of any notes and/or offset any cash payments the Partnership is required to make in excess of the principal amount of exchanged notes, as the case may be, with such reduction and/or offset subject to a cap.In connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates may enter into various derivative transactions with respect to Federal Realtys common shares and/or purchase Federal Realtys common shares or other securities of Federal Realty in secondary market transactions concurrently with or shortly after the pricing of the notes, including with or from, as the case may be, certain investors in the notes. The forward-looking statements contained in this release are as of the date of this release, and, except as required by law, neither Federal Realty nor the Partnership undertakes any obligation to update any such statements, whether as a result of new information, future events or otherwise.Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realtys mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities.