Published on 7/31/2023 in the Prospect News Investment Grade Daily.
New Issue: Invitation Homes sells $800 million of senior notes due 2030, 2033
By Wendy Van Sickle
Columbus, Ohio, July 31 – Invitation Homes Operating Partnership LP priced $800 million 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 $450 million of 5.45% seven-year senior notes at 98.866 to yield 5.647%, or a spread of 158 basis points over Treasuries.
Invitation Homes sold $350 million of 5.5% 10-year senior notes at 98.642 to yield 5.679%, or a spread of 173 bps over Treasuries.
Both notes have optional make-whole calls until a number of months before their maturity dates when there are par calls.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC, Regions Securities LLC and Wells Fargo Securities, LLC were the bookrunners.
The operating partnership intends to use a portion of the net proceeds to repay all $150 million of outstanding debt under its revolving credit facility, with the remaining net proceeds used for general corporate purposes, which may include repayment of other debt, including secured debt.
The amount outstanding under the revolver is as of July 28, with interest set at SOFR plus 89 bps and an additional 10 bps CSA.
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
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| Amount: | $800 million
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| Issue: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC, Regions Securities LLC and Wells Fargo Securities, LLC
|
| Co-managers: | BMO Capital Markets Corp., Capital One Securities, Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, BNP Paribas Securities Corp., Huntington Securities, Inc., Raymond James & Associates, Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc., Academy Securities, Inc., BNY Mellon Capital Markets, LLC and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuers: | Sidley Austin LLP, Simpson Thacher & Bartlett LLP and Venable LLP
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| Counsel to underwriters: | Goodwin Procter LLP
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| Pricing date: | July 31
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| Settlement date: | Aug. 2
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
|
|
|
| 2030 notes
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| Amount: | $450 million
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| Maturity: | Aug. 15, 2030
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| Coupon: | 5.45%
|
| Price: | 98.866
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| Yield: | 5.647%
|
| Spread: | Treasuries plus 158 bps
|
| Call feature: | Before June 15, 2030, make-whole call at Treasuries plus 25 bps; par call thereafter
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| Cusip: | 46188BAE2
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|
|
| 2033 notes
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| Amount: | $350 million
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| Maturity: | Aug. 15, 2033
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| Coupon: | 5.5%
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| Price: | 98.642
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| Yield: | 5.679%
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| Spread: | Treasuries plus 173 bps
|
| Call feature: | Before May 15, 2033, make-whole call at Treasuries plus 30 bps; par call thereafter
|
| Cusip: | 46188BAF9
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