Equity Residential Announces Completion and Results of Tender Offer by ERP Operating Limited Partnership for Its Exchangeable Notes

CHICAGO--(BUSINESS WIRE)--Equity Residential (NYSE:EQR) today announced that its operating partnership, ERP Operating Limited Partnership (the “Operating Partnership”), accepted for purchase approximately $48.5 million of the principal amount of its outstanding 3.85% Exchangeable Senior Notes due August 15, 2026, which were validly tendered pursuant to its previously announced cash tender offer (the “Exchangeable Notes Offer”).

The Exchangeable Notes Offer expired at 12:00 Midnight, Eastern Standard Time, on December 30, 2009. Payment for notes purchased pursuant to the Exchangeable Notes Offer was made on December 31, 2009.

The aggregate consideration for the Exchangeable Notes accepted for purchase, including accrued and unpaid interest of approximately $0.7 million, was approximately $49.2 million.

As a result of the non-cash write-off of certain unamortized costs and a discount related to the Exchangeable Notes, the company will record a charge to earnings and funds from operations (FFO) of approximately $1.7 million in the fourth quarter of 2009.

 Combined with the charge of approximately $23.2 million, announced in a press release dated December 10, 2009, for the recent tender for certain of the Operating Partnership’s Non-Exchangeable Notes, the company will record a combined total charge to earnings and FFO of approximately $24.9 million, or $0.09 per share, in the fourth quarter of 2009.

 This charge was not included in the fourth quarter and full year 2009 guidance ranges announced on October 28, 2009 in conjunction with the company’s third quarter 2009 earnings release.

To view  a summary of the company’s recent tender offers for certain of the Operating Partnership’s notes, please contact Marty McKenna, Equity Residential,  312-928-1901