The Howard Hughes Corporation Announces Pricing of $650,000,000 Senior Notes Due 2029 and $650,000,000 Senior Notes Due 2031
January 19, 2021 at 10:13 pm
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The Howard Hughes Corporation announced the pricing of $650 million in aggregate principal amount of senior notes due 2029 and $650 million in aggregate principal amount of senior notes due 2031. The 2029 Notes will pay interest semi-annually at a rate of 4.125% per annum and the 2031 Notes will pay interest semi-annually at a rate of 4.375% per annum, in each case payable on February 1 and August 1 of each year, beginning on August 1, 2021. The Notes will be unsecured senior obligations of the Company and will be guaranteed by certain subsidiaries of the Company. The offering of the Notes is expected to close on February 2, 2021, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from the Offering, as well as available cash on hand, to repurchase, pursuant to the Company's previously announced tender offer for, or otherwise redeem, all of its $1 billion outstanding principal amount of 5.375% senior notes due 2025, plus any accrued and unpaid interest; repay all of the approximately $280 million outstanding under its bridge loans for The Woodlands® Towers at the Waterway and The Woodlands Warehouse maturing June 2021; and pay all premiums, fees and expenses related to the foregoing.
Howard Hughes Holdings Inc. owns, manages, and develops commercial, residential, and mixed-use real estate throughout the United States. The Company operates through four segments: Operating Assets, master planned communities (MPCs), Strategic Developments, and Seaport. Its Operating Assets segment owns a variety of asset types including approximately 8.8 million square feet of retail and office properties, 5,587 wholly and partially owned multi-family units, and wholly and partially owned other properties and investments. The MPC segment plans, develops, and manages small cities and large-scale, mixed-use communities in the market. Its MPC segment includes the development and sale of residential and commercial land, primarily in large-scale, long-term projects. The Strategic Developments segment consists of commercial properties. The Seaport segment is a multiblock district under private management by a single owner in New York City.