Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

In order to pay off its outstanding debts, EPR Properties (EPR - Snapshot Report) – a specialty real estate investment trust (REIT) – recently priced an underwritten equity offering of 5.250% Senior Notes worth $275 million. The offering is expected to be completed on Jun 18, 2013 (subject to customary closing conditions).

Notably, some of EPR's subsidiaries will guarantee the senior notes. J.P. Morgan Securities LLC of JPMorgan Chase & Co. (JPM - Analyst Report), Citigroup Global Markets Inc. of Citigroup, Inc. (C - Analyst Report) and RBC Capital Markets, LLC served as joint book-running managers for the notes offering. 

In particular, EPR intends to use the net proceeds to repay several outstanding debts – including principal balance of the unsecured revolving credit facility; fixed rate mortgage debt secured by 4 Canada-based entertainment retail centers worth $90.9 million Canadian dollars (U.S. $89.5 million based on a conversion rate of 0.9843 as of Mar 31, 2013); and fixed rate mortgage debt worth $56.7 million secured by its N.Y.-based entertainment retail center.

Also, the company plans to pay early repayment costs, related to the abovementioned mortgage debt. Moreover, it intends to spend the remaining amount of the proceeds for future investments and other corporate purposes. This, in particular, includes the proposed acquisition of a company, which indirectly holds 11 theatre properties.

We expect this underwritten public offering to help the company attain financial flexibility and position it favorably to pursue investment opportunities and acquisitions, which will go a long way in enhancing its top-line.

Significantly, EPR has interests in assets in selected market segments, with Entertainment, Recreation and Education being the primary segments. Its investment in these segments totals over $3.2 billion.

Currently, EPR carries a Zacks Rank #2 (Buy). Other well performing REITs include Acadia Realty Trust (AKR - Snapshot Report) which has the same rank as EPR.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%