EPR Sells Senior Notes to Pay Off Mortgages

EPR Properties has priced a $275 million debt offering at an interest rate of 5.250%. The senior notes are due in 2023.

Proceeds will be used to pay off $90.9 million ($89.5 million in U.S. dollars) of fixed rate mortgage debt secured by four entertainment retail centers in the Canadian province of Ontario. They will also be used to pay off $56.7 million of fixed rate mortgage debt secured by New Roc City, an entertainment retail center in New Rochelle, N.Y. The funds will also be used to pay the costs associated with the early debt repayments, repay the outstanding principal balance of an unsecured revolving credit facility and other general business purposes.

JPMorgan Securities LLC, Citigroup Global Markets Inc. and RBC Capital Markets are the joint book-running managers for this offering.

Separately, NorthStar Realty Finance priced its private offering of $300 million in exchangeable senior notes at 5.375%. These notes come due in 2033.

The initial exchange ratio will be approximately 102.7 shares of common stock for each $1,000 in principal amount of the notes and the initial exchange price will be approximately $9.74 per common stock share.

Prior to June 15, 2020, the notes may not be redeemed unless needed to keep NorthStar qualified as a real estate investment trust.