By Paul A. Harris
Portland, Ore., Nov. 8 – Service Properties Trust (SVC) priced an upsized $1 billion issue of 8 5/8% eight-year secured notes (B1/BB) at 98.59 to yield 8 7/8% on Wednesday, according to market sources.
The issue size was increased from $800 million.
The yield printed at the tight end of yield talk in the 9% area. Initial guidance was in the low-to-mid 9% area.
Timing was accelerated. When announced on Wednesday morning the deal was scheduled to remain in the market until Thursday.
Bookrunners were Goldman Sachs & Co. LLC, Wells Fargo Securities, LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC BofA Securities, Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC and UBS Securities LLC.
The Newton, Mass.-based real estate investment trust plans to use the proceed plus cash on hand to fully redeem its outstanding 4.65% senior notes due 2024 and its 4.35% senior notes due 2024.
SVC is invested in hotels and service-focused retail net lease properties.
| Issuer: | Service Properties Trust
|
| Amount: | $1 billion, increased from $800 million
|
| Issue: | Senior secured notes
|
| Maturity: | Nov. 15, 2031
|
| Bookrunners: | Goldman Sachs & Co. LLC, Wells Fargo Securities, LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC BofA Securities, Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC and UBS Securities LLC
|
| Coupon: | 8 5/8%
|
| Price: | 98.59
|
| Yield: | 8 7/8%
|
| Spread: | 436 bps over Treasuries
|
| Call protection: | Three years
|
| Trade date: | Nov. 8
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody’s: B1
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9% area
|
| Marketing: | Drive-by
|
|
|
© 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.
