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 reduce its debt level, UDR, Inc. (UDR - Analyst Report) recently priced 3.700% senior unsecured notes worth $300 million at 99.981% of the principal amount plus accrued interest. The settlement of the offering is anticipated to close on Sep 26, 2013.

The senior unsecured notes have a yield to maturity of 3.703% and will mature on Oct 1, 2020. The interest on senior unsecured notes is to be paid on Apr 1 and Oct 1, semi-annually. The first interest is payable on Apr 1, 2014. The notes are fully guaranteed by United Dominion Realty, L.P – a subsidiary of UDR.

In particular, this apartment real estate investment trust (REIT) intends to utilize the net proceeds to pay off its outstanding balance under the unsecured credit facility worth $900 million. The remaining amount will be used to meet other corporate needs.

Notably, a consortium of leading financial institutions assisted UDR in this offering. While, J.P. Morgan of JPMorgan Chase & Co. (JPM - Analyst Report) and Morgan Stanley (MS - Analyst Report) acted as joint book-running managers, U.S. Bancorp (USB - Analyst Report), Mitsubishi UFJ Securities and Credit Suisse acted as co-managers for the offering.

For UDR, whose liquidity amounted to $769 million as of Jun 30, 2013, the aforementioned transaction is strategic fit, as we expect it to provide greater financial flexibility to the company. Moreover, this will also enable UDR to pursue strong portfolio restructuring activity that will go a long way in enhancing top-line growth.

UDR currently carries a Zacks Rank #3 (Hold).

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
BOFL HOLDING BOFI 85.58 +5.32%
DIXIE GROUP DXYN 15.41 +4.98%
CELL THERAPE CTIC 3.13 +4.68%
RAMBUS INC RMBS 12.23 +3.73%
DAIMLER AG DDAIF 93.03 +2.95%