UDR, Inc. (NYSE: UDR),
a leading multifamily real estate investment trust (REIT), today
announced the commencement of a tender offer for any and all of its
$53,118,000 principal amount of outstanding 8½% Debentures Due September
15, 2024 (the “Notes”)(CUSIP No. 910197AC6) and a solicitation of
consents from the holders of the Notes to amend the related indenture.
The tender offer is scheduled to expire at 11:59 P.M., Eastern Time, on
August 31, 2009, unless extended or earlier terminated (the “Expiration
Time”), and the consent solicitation is scheduled to expire at 5:00
P.M., Eastern Time, on August 17, 2009, unless extended or earlier
terminated (the “Early Tender Deadline”). The Company intends to use
borrowings under its existing credit facilities to pay for all of the
Notes purchased pursuant to the tender offer.
Holders who validly tender their Notes and deliver their consents by the
Early Tender Deadline shall receive $1,010 per $1,000 principal amount
of Notes if the Notes are accepted for purchase. Holders who validly
tender their Notes and deliver their Consents after the Early Tender
Deadline but by the Expiration Time shall receive $980 per $1,000
principal amount of Notes if the Notes are accepted for purchase.
Holders whose tendered Notes are accepted for purchase will also receive
accrued and unpaid interest from the most recent interest payment date
for the Notes, to, but not including, the applicable payment date for
the Notes in the tender offer.
Holders who validly tender their Notes and deliver their consents by the
Early Tender Deadline and whose Notes are accepted for purchase will
receive payment promptly after the Early Tender Deadline. Holders who
validly tender their Notes and deliver their Consents after the Early
Tender Deadline but by the Expiration Time and whose Notes are accepted
for purchase will receive payment promptly after the Expiration Time.
The consents are being solicited to eliminate certain restrictive
covenants and certain events of default contained in the indenture
governing the Notes. Holders may not tender their Notes without
delivering consents or deliver consents without tendering their Notes.
The tender offer is subject to the satisfaction of certain conditions,
including a requisite consents condition. The complete terms and
conditions of the tender offer are described in the Offer to Purchase
and Consent Solicitation Statement dated August 4, 2009, copies of which
may be obtained by contacting Global Bondholders Services Corporation as
Information Agent at (866) 924-2200 (U.S. toll-free) or (212) 430-3774.
