UDR Prices $350 Million of 1.900% Senior
Unsecured Medium-Term Notes Due 2033 and Announces Redemption
of All Outstanding 3.750% Senior Unsecured Notes Due July 2024
DENVER, CO., November 30, 2020 – UDR, Inc. (the “Company”) (NYSE: UDR), announced today that it has priced an offering of $350 million aggregate principal amount of 1.900% senior unsecured medium-term notes due March 15, 2033. The notes were priced at 99.578% of the principal amount, plus accrued interest from December 14, 2020 to yield 1.939% to maturity.
Interest on the notes is payable semiannually on March 15 and September 15 with the first interest payment on March 15, 2021. The notes will mature on March 15, 2033 unless redeemed prior to that date.
The notes are fully and unconditionally guaranteed by United Dominion Realty, L.P.
The Company also announced that it will redeem the remaining $183 million aggregate principal amount of its outstanding 3.750% medium-term notes due July 2024 (CUSIP No. 90265EAJ9).
The Company expects to allocate the net proceeds from the offering to eligible green projects. Pending allocation for such purposes, the Company expects to initially use a portion of the net proceeds from the offering to fund the redemption of the 3.750% medium-term notes due 2024 (plus the make-whole amount and accrued and unpaid interest) and the balance of the net proceeds to repay other outstanding indebtedness, including the Company’s remaining $67.5 million of secured indebtedness maturing in 2023 and outstanding indebtedness under the Company’s commercial paper program and working capital credit facility, or to fund potential acquisitions.
The settlement of the offering is expected to occur on December 14, 2020, subject to the satisfaction of customary closing conditions.
BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., TD Securities (USA) LLC and Truist Securities, Inc. are the joint book-running managers for the offering. Citigroup Global Markets Inc., PNC Capital Markets LLC, Regions Securities LLC, Wells Fargo Securities, LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, BNY Mellon Capital Markets, LLC, MUFG Securities Americas Inc. and Samuel A. Ramirez & Company, Inc. are the co-managers for the offering.
This offering is being conducted pursuant to the Company’s currently effective shelf registration statement, which was previously filed with the Securities and Exchange Commission (the “SEC”). You may obtain copies of the pricing supplement, prospectus supplement and prospectus relating to the offering without charge from the SEC at www.sec.gov. Alternatively, copies of these documents may be obtained by contacting (i) BofA Securities, Inc., 200 North College Street, NC1-004-03-43, Charlotte, NC 28255-0001, Attn: Prospectus Department, Toll-free: 1-800-294-1322, or by emailing dg.prospectus_requests@bofa.com; (ii) J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY 10179, Attn: Investment Grade Syndicate Desk, Collect: 1-212-834-4533; or (iii) U.S. Bancorp Investments, Inc. 214 N. Tryon Street, 26th Floor, Charlotte, North Carolina 28202, Toll-free: 1 877-558-2607.
