Ventas Realty talks $500 million three-year exchangeable notes at 3.25%-3.75%, up 22.5%-27.5%

By Abigail W. Adams

Portland, Me., June 8 – Ventas Realty, LP plans to price a $500 million offering of three-year notes exchangeable for parent company Ventas Inc.’s common shares after the market close on Thursday with price talk for a coupon of 3.25% to 3.75% and an initial exchange premium of 22.5% to 27.5%, according to a market source.

J.P. Morgan Securities LLC, BofA Securities Inc. and Morgan Stanley & Co. LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $75 million.

The notes are freely callable if it is determined redemption of the notes is necessary to maintain Ventas’ status as a REIT.

The notes are putable upon a fundamental change.

There is dividend protection above 45 cents a quarter.

The notes will be settled in cash up to the principal amount with any remaining amount to be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used for general corporate purposes, including the repayment of debt.

Ventas is a Chicago-based health care and real estate investment trust.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.