DCT Industrial Trust Inc. (NYSE:DCT) Issues $275 Million Worth Secondary Notes


Dallas, Texas 10/09/2013 (Financialstrend) – Denver, Colorado based DCT Industrial Trust Inc. (NYSE:DCT) announced on October 2 that its 100% owned subsidiary, DCT Industrial Operating Partnership LP is offering to sell senior unsecured notes through a private placement. The subsidiary is planning to use the proceeds from the senior notes offering to service and retire its $175 million senior term loans and an additional $50 million senior fixed rate notes. The company hopes to sell these notes only to institutional investors and thereby increase the percentage of stock held by such firms which now stands at 93%.

The firm hopes to raise close to $275 million form this note offer which will attract interest of 4.5% and will be due in 2023. It is looking to close out the offer by October 9. These notes will be carrying the guarantee of the parent company and its subsidiaries.

Ratings agency Moody’s has assigned a BAA2 rating on these newly issued notes from DCT which has a market cap of $2.06 billion. The Baa2 senior unsecured rating indicates DCT’s spread out top quality investments which include high rental producing “warehouses and industrial building across all the major states of United States.

At close of business on October 8, the stock depreciated by 1.12% to end the day at $7.09 per share. At current valuations, the stock is trading 14% less than its 52 week high pricing and is up 23% from its 52 week low valuations. In spite of the strong backing from rating agencies, the stock has lost 1.8% over the past week and by close 5.09% over the past 90 days. The stock has 290 million shares outstanding. In the just concluded quarter, the shares of the stock has recorded a 33% increase its earnings per share over its previous quarter.