By Andrea Heisinger
New York, March 14 - Ventas Realty, LP sold an upsized $500 million of 2.7% seven-year senior notes (Baa2/BBB/BBB+) on Thursday at a spread of 132 basis points over Treasuries, a market source said.
Whispered guidance at midday was in the Treasuries plus 150 bps area, an informed source said. The size was increased from $300 million.
Pricing was at 99.924 to yield 2.709%. There is a make-whole call at Treasuries plus 20 bps until Jan. 1, 2020 and a par call after that date.
Bookrunners were Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Jefferies & Co. and J.P. Morgan Securities LLC.
The notes are guaranteed by Ventas, Inc.
Proceeds will be used to repay debt under an unsecured revolving credit facility and for working capital and general corporate purposes, including funding acquisitions and investments.
Ventas was last in the market with a $925 million sale of notes due 2018 and 2022 on Dec. 6, 2012.
The real estate investment trust for housing and health care properties is based in Chicago.
| Issuer: | Ventas Realty, LP
|
| Guarantor: | Ventas, Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million, upsized from $300 million
|
| Maturity: | April 1, 2020
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Jefferies & Co., J.P. Morgan Securities LLC
|
| Senior co-managers: | Barclays, Morgan Stanley & Co. LLC, RBS Securities Inc., TD Securities (USA) LLC
|
| Co-managers: | BB&T Securities LLC, Fifth Third Securities Inc., Mitsubishi UFJ Securities (USA) Inc., SMBC Nikko Capital Markets Ltd., Williams Capital Group LP
|
| Coupon: | 2.7%
|
| Price: | 99.924
|
| Yield: | 2.709%
|
| Spread: | Treasuries plus 132 bps
|
| Call: | Make-whole at Treasuries plus 20 bps to Jan. 1, 2020, par call after
|
| Trade date: | March 14
|
| Settlement date: | March 19
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
| Price talk: | 150 bps area
|
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