The Cranford REIT jumps in the busy corporate bond market with a two-part offering.Mack-Cali Realty has sold $200 million of senior unsecured notes, made up of $100 million of six-year notes and $100 million of 10-year notes. The Cranford-based firm will use proceeds of both tranches of notes to repay outstanding borrowings under its $600 million unsecured revolving credit facility. The six-year notes were priced to yield 5.48%, while the 10-year notes were priced to yield 5.65%.
Propelled by a high level of business spending, companies are expected to issue some $719 billion of bonds and other commercial paper in 2006, up 1.6% from last year”s activity, according to the Bond Market Association (BMA), a trade group based in New York City. Based on its annual survey of businesses, the BMA expects company spending to rise some 10% this year.