American Campus expects to net $395 million from offering

Jun 19, 2014
Austin American Statesman

Austin-based American Campus Communities Inc., one of the nation’s largest owner and manager of student housing properties, said it expects to net $395.3 million from a $400 million offering of convertible debt


American Campus, which owns or manages 200 student housing properties comprising more than 120,000 beds, said the offering is in 10-year unsecured senior notes


American Campus said it plans to use the net proceeds to repay a portion of the company’s revolving credit facility. As of June 16, the outstanding balance on that revolving credit facility is $333 million, according to a securities filing


Founded in 1993, American Campus Communities had revenue of $657.4 million in 2013. For the first quarter of 2014, the company reporter that revenue rose 12.3 percent to $183.2 million, exceeding analysts’ projections. The company said its net income for the first quarter rose 29 percent to $28.9 million, or 27 cents a share. Company officials credited new-property acquisitions, completion of developments and a rise in rental rates for the current school year with driving the improved numbers


American Campus’ shares closed Wednesday at $38.10, up 21 cents, or .55 percent



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