Equity Office Properties Trust, Chicago, has issued $1 billion of 4.75% senior unsecured notes due March 2014, with an effective interest rate of 5.54%.The office real estate investment trust said it has entered into $1 billion of fixed-to-floating interest rate swaps due March 2014. As a result of these swaps, the effective rate on the notes, which are guaranteed by EOPT, is 53 basis points over the London interbank offered rate, the REIT said. The net cash proceeds from the offering of approximately $990.4 million have been used to repay balances under EOPT's $1 billion revolving credit facility and to settle two interest rate swaps. A short-term credit facility that EOPT entered into last year has also been canceled.
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