Published on 9/23/2013 in the Prospect News Investment Grade Daily.
New Issue: Ventas Realty brings $850 million issue in three-, 30-year tranches
By Aleesia Forni
Virginia Beach, Va., Sept. 23 - Ventas Realty LP came to Monday's market selling a $850 million two-tranche issue of senior notes, according to a filing with the Securities and Exchange Commission.
The company sold $550 million of 1.55% senior notes due 2016 with a spread of Treasuries plus 90 basis points, or 99.910 to yield 1.581%.
There was also $300 million tranche of 5.7% 30-year bonds priced at 195 bps over Treasuries.
The bonds sold at 99.628 to yield 5.726%.
BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, Securities LLC, Barclays, UBS Securities LLC, Credit Agricole Securities (USA) Inc. and Morgan Stanley & Co. LLC were the joint bookrunners.
Proceeds will be used to repay debt under the company's unsecured revolving credit facility and for working capital and other general corporate purposes, including the funding of future acquisitions or investments.
The notes are guaranteed by Ventas, Inc.
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: | $850 million
|
| Joint bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, UBS Securities LLC, Barclays, Credit Agricole Securities (USA) Inc., Morgan Stanley & Co. LLC
|
| Trade date: | Sept. 23
|
| Settlement date: | Sept. 26
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC-registered
|
|
|
| Three-year notes
|
| Amount: | $550 million
|
| Maturity: | Sept. 26, 2016
|
| Coupon: | 1.55%
|
| Price: | 99.910
|
| Yield to Maturity: | 1.581%
|
| Senior co-managers: | Jefferies LLC, RBC Capital Markets LLC, RBS Securities Inc., TD Securities (USA) LLC
|
| Co-managers: | BNP Paribas Securities Corp., Fifth Third Securities Inc., The Wiliams Capital Group LP
|
| Spread: | Treasuries plus 90 bps
|
| Make-whole call: | Treasuries plus 15 bps
|
|
|
| 30-year bond
|
| Amount: | $300 million
|
| Maturity: | Sept. 30, 2043
|
| Coupon: | 5.7%
|
| Price: | 99.628
|
| Yield to worst: | 5.726
|
| Senior co-managers: | Jefferies LLC, RBC Capital Markets LLC, RBS Securities Inc., TD Securities (USA) LLC, Wells Fargo Securities LLC
|
| Co-managers: | BB&T Capital Markets, BBVA Securities Inc., Mitsubishi UFJ Securities (USA) Inc., SMBC Nikko Securities America Inc.
|
| Spread: | Treasuries plus 195 bps
|
| Make-whole call: | Treasuries plus 30 bps
|
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