| Item 1.01 | Entry into a Material Definitive Agreement. |
On June 17, 2019, Camden Property Trust (the “Company”) completed an underwritten public offering of $600 million in aggregate principal amount of its 3.150% Senior Notes due 2029 (the “Notes”).
The Notes bear interest at 3.150% from June 17, 2019, with interest payable each January 1 and July 1 beginning January 1, 2020. The Notes will mature on July 1, 2029. The Notes are redeemable at any time at the option of the Company, in whole or in part, at a redemption price equal to the principal amount and accrued interest of the Notes being redeemed, plus a make-whole premium. If, however, the Company redeems the Notes 90 days or fewer prior to their maturity date, the redemption price will equal 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest on the amount being redeemed to the redemption date.
The Notes were priced at a discount such that the Notes were offered to the public at 99.751% of their face amount. The Notes were issued under an Indenture between the Company and U.S. Bank National Association, as successor to SunTrust Bank, as trustee (the “Trustee”), as amended by the First Supplemental Indenture dated as of May 4, 2007 between the Company and the Trustee, the Second Supplemental Indenture dated June 3, 2011 between the Company and the Trustee and the Third Supplemental Indenture dated October 4, 2018 between the Company and the Trustee.
In anticipation of the offering of the Notes, the Company initiated forward interest rate swap agreements with an aggregate notional amount of $300 million. After giving effect to the settlement of the swap agreements which will be recognized over the first seven years of the Notes and deducting the underwriting discounts and other estimated expenses of the offering, the effective interest rate on the Notes is approximately 3.84% through June 2026, and approximately 3.28% thereafter, for anall-in average effective rate of approximately 3.67%.
The description in this Current Report of the Notes is not intended to be a complete description, and the description is qualified in its entirety by the full text of the form of note, which is attached as an exhibit to this Current Report.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation Under anOff-Balance Sheet Arrangement of a Registrant. |
The information set forth in Item 1.01 is incorporated herein by reference.
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