GERMANTOWN, Tenn., Dec. 11,
2024 /PRNewswire/ -- Mid-America Apartment
Communities, Inc., ("MAA") (NYSE: MAA) today announced that its
operating partnership, Mid-America Apartments, L.P. ("MAALP"),
priced a $350,000,000 offering of
MAALP's 4.950% senior unsecured notes due March 1, 2035 (the "Notes") under its existing
shelf registration statement. The Notes were priced at 99.170% of
the principal amount. The closing of the offering is expected to
occur on December 18, 2024, subject
to the satisfaction of customary closing conditions.
MAALP intends to use net proceeds from the offering to repay
borrowings outstanding under its unsecured commercial paper
program, with any remaining net proceeds to be used for general
corporate purposes, which may include, without limitation, the
repayment of other debt and the acquisition, development and
redevelopment of apartment communities.
Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Mizuho
Securities USA LLC, Truist
Securities, Inc., U.S. Bancorp Investments, Inc., and KeyBanc
Capital Markets Inc. were the joint book-running managers for the
offering.
Bass, Berry & Sims PLC is serving as legal counsel to MAALP,
and Sidley Austin LLP is serving as legal counsel to the
underwriters.
A registration statement relating to these securities has been
filed with the Securities and Exchange Commission and has become
effective. The offering of these securities will be made only by
means of a prospectus supplement and accompanying prospectus.
Copies of these documents may be obtained by calling Wells Fargo
Securities, LLC toll-free at 1-800-645-3751, J.P. Morgan Securities
LLC collect at 1-212-834-4533, Mizuho Securities USA LLC at 1-866-271-7403, Truist Securities,
Inc. at 1-800-685-4786 or U.S. Bancorp Investments, Inc. toll-free
at 1-877-558-2607. Alternatively, investors may obtain these
documents, when available, for free by visiting EDGAR on the
Securities and Exchange Commission's website at www.sec.gov.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy the Notes, nor shall there be any
sale of the Notes in any jurisdiction in which such offer,
solicitation, or sale would be unlawful under the securities laws
of any such jurisdiction.
About MAA
MAA, an S&P 500 company, is a real estate investment trust
("REIT") focused on delivering full-cycle and superior investment
performance for shareholders through the ownership, management,
acquisition, development and redevelopment of quality apartment
communities primarily in the Southeast, Southwest and Mid-Atlantic
regions of the United States.
Forward-Looking Statements
Sections of this release contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, with respect to our expectations for future periods.
Forward-looking statements do not discuss historical fact, but
instead include statements related to expectations, projections,
intentions or other items related to the future. Such
forward-looking statements include, without limitation, statements
related to the closing of the Notes offering and the intended use
of proceeds. Words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates," "forecasts," "projects,"
"assumes," "will," "may," "could," "should," "budget," "target,"
"outlook," "proforma," "opportunity," "guidance" and variations of
such words and similar expressions are intended to identify such
forward-looking statements. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors, as
described below, which may cause our actual results, performance or
achievements to be materially different from the results of
operations, financial conditions or plans expressed or implied by
such forward-looking statements. Although we believe that the
assumptions underlying the forward-looking statements contained
herein are reasonable, any of the assumptions could be inaccurate,
and therefore such forward-looking statements included in this
release may not prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included
herein, the inclusion of such information should not be regarded as
a representation by us or any other person that the results or
conditions described in such statements or our objectives and plans
will be achieved.
The following factors, among others, could cause our actual
results, performance or achievements to differ materially from
those expressed or implied in the forward-looking statements:
- inability to generate sufficient cash flows due to unfavorable
economic and market conditions, changes in supply and/or demand,
competition, uninsured losses, changes in tax and housing laws or
other factors;
- exposure to risks inherent in investments in a single industry
and sector;
- adverse changes in real estate markets, including, but not
limited to, the extent of future demand for multifamily units in
our significant markets, barriers of entry into new markets which
we may seek to enter in the future, limitations on our ability to
increase or collect rental rates, competition, our ability to
identify and consummate attractive acquisitions or development
projects on favorable terms, our ability to consummate any planned
dispositions in a timely manner on acceptable terms, and our
ability to reinvest sale proceeds in a manner that generates
favorable returns;
- failure of development communities to be completed within
budget and on a timely basis, if at all, to lease-up as anticipated
or to achieve anticipated results;
- unexpected capital needs;
- material changes in operating costs, including real estate
taxes, utilities and insurance costs, due to inflation and other
factors;
- inability to obtain appropriate insurance coverage at
reasonable rates, or at all, losses due to uninsured risks,
deductibles and self-insured retentions, or losses from
catastrophes in excess of coverage limits;
- ability to obtain financing at favorable rates, if at all, or
refinance existing debt as it matures;
- level and volatility of interest or capitalization rates or
capital market conditions;
- the effect of any rating agency actions on the cost and
availability of new debt financing;
- the impact of adverse developments affecting the U.S. or global
banking industry, including bank failures and liquidity concerns,
which could cause continued or worsening economic and market
volatility, and regulatory responses thereto;
- significant change in the mortgage financing market or other
factors that would cause single-family housing or other alternative
housing options, either as an owned or rental product, to become a
more significant competitive product;
- ability to continue to satisfy complex rules in order to
maintain our status as a REIT for federal income tax purposes, the
ability of MAALP to satisfy the rules to maintain its status as a
partnership for federal income tax purposes, the ability of our
taxable REIT subsidiaries to maintain their status as such for
federal income tax purposes, and our ability and the ability of our
subsidiaries to operate effectively within the limitations imposed
by these rules;
- inability to attract and retain qualified personnel;
- cyber liability or potential liability for breaches of our or
our service providers' information technology systems, or business
operations disruptions;
- potential liability for environmental contamination;
- changes in the legal requirements we are subject to, or the
imposition of new legal requirements, that adversely affect our
operations;
- extreme weather and natural disasters;
- disease outbreaks and other public health events, and measures
that are taken by federal, state and local governmental authorities
in response to such outbreaks and events;
- impact of climate change on our properties or operations;
- legal proceedings or class action lawsuits;
- impact of reputational harm caused by negative press or social
media postings of our actions or policies, whether or not
warranted;
- compliance costs associated with numerous federal, state and
local laws and regulations; and
- other risks identified in this release and in reports we file
with the SEC or in other documents that we publicly
disseminate.
New factors may also emerge from time to time that could have a
material adverse effect on our business. Except as required
by law, we undertake no obligation to publicly update or revise
forward-looking statements contained in this release to reflect
events, circumstances or changes in expectations after the date of
this release.
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SOURCE MAA