New Issue: Invitation Homes prices $1 billion senior notes in parts due 2028, 2031

By Wendy Van Sickle

Columbus, Ohio, Nov. 1 – Invitation Homes Operating Partnership LP priced $1 billion of senior notes (Baa3/BBB-/BBB) in two parts on Monday, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Invitation Homes Inc., Invitation Homes OP GP LLC and IH Merger Sub, LLC.

The company priced $600 million of 2.3% senior notes due Nov. 15, 2028 at 99.871 to yield 2.32% or a spread of Treasuries plus 87 basis points, compared to talk in the Treasuries plus 110 bps area.

Invitation Homes priced $400 million of 2.7% senior notes due Jan. 15, 2034 at 99.809 to yield 2.718% or a spread of Treasuries plus 115 bps, versus talk in the Treasuries plus 135 bps area.

Both notes have optional make-whole calls until a number of months before their maturity dates when there are par calls.

Wells Fargo Securities, LLC, Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC are active bookrunners. Passive bookrunners are BofA Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC and PNC Capital Markets LLC.

The operating partnership intends to use a portion of the net proceeds from this offering to repay all $184.4 million of the securitization-related mortgage loan labeled IH 2017-2, and the remaining net proceeds to repay a portion of the securitization-related mortgage loan labeled IH 2018-3 and for general corporate purposes, which may include, without limitation, working capital, repayment of indebtedness, acquisitions and renovations of single-family properties and for related activities in accordance with the company’s business strategy.

The issuer is a subsidiary of Invitation Homes, Inc., a Dallas-based property manager.

Issuer:	Invitation Homes Operating Partnership LP
Guarantors:	Invitation Homes Inc., Invitation Homes OP GP LLC and IH Merger Sub, LLC
Issue:	Senior notes
Amount:	$1 billion
Bookrunners:	Wells Fargo Securities, LLC, Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC (active) and BofA Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC and PNC Capital Markets LLC (passive)
Co-managers:	Citigroup Global Markets Inc., KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., Raymond James & Associates, Inc., Regions Securities LLC, Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc., Academy Securities, Inc., Comerica Securities, Inc. and Samuel A. Ramirez & Co., Inc.
Pricing date:	Nov. 1
Settlement date:	Nov. 5
Ratings:	Moody’s: Baa3
	S&P: BBB-
	Fitch: BBB
Distribution:	SEC registered
2028 notes
Amount:	$600 million
Maturity:	Nov. 15, 2028
Coupon:	2.3%
Price:	99.871
Yield:	2.32%
Spread:	Treasuries plus 87 bps
Call feature:	Before Sept. 15, 2028 make-whole call at Treasuries plus 15 bps; par call thereafter
Price talk:	Treasuries plus 110 bps area
Cusip:	46188BAB8
2034 notes
Amount:	$400 million
Maturity:	Jan. 15, 2034
Coupon:	2.7%
Price:	99.809
Yield:	2.718%
Spread:	Treasuries plus 115 bps
Call feature:	Before Oct. 15, 2033 make-whole call at Treasuries plus 20 bps; par call thereafter
Price talk:	Treasuries plus 135 bps area
Cusip:	46188BAC6

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