Published on 8/5/2019 in the Prospect News Investment Grade Daily.
New Issue: Mid-America Apartments prices $250 million tap of 3.95% notes at 125 bps spread
By Cristal Cody
Tupelo, Miss., Aug. 5 – Mid-America Apartments, LP priced a $250 million add-on Monday to its 3.95% senior notes due March 15, 2029 at a spread of 125 basis points over Treasuries, according to an FWP filed with the Securities and Exchange Commission.
The notes (Baa1/BBB+/BBB+) priced at 107.827 to yield 2.985%.
Wells Fargo Securities LLC, Citigroup Global Markets Inc., Jefferies LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Mizuho Securities USA Inc. were the bookrunners.
The company originally sold $300 million of the notes on Feb. 26 at 99.72 to yield 3.984% and a spread of 135 bps over Treasuries. The total outstanding is $550 million.
Proceeds will be used to repay a portion of the outstanding borrowings under the company’s $500 million commercial paper program and for general corporate purposes.
Mid-America Apartments is a Memphis-based real estate investment trust.
| Issuer: | Mid-America Apartments, LP
|
| Amount: | $250 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2029
|
| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., Jefferies LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Mizuho Securities USA Inc.
|
| Senior co-managers: | Capital One Securities, Inc. and KeyBanc Capital Markets Inc.
|
| Co-managers: | BB&T Capital Markets, BMO Capital Markets Corp., Fifth Third Securities, Inc., FTN Financial Securities Corp., Regions Securities LLC, SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC
|
| Coupon: | 3.95%
|
| Price: | 107.827
|
| Yield: | 2.985%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Dec. 15, 2028; thereafter at par
|
| Trade date: | Aug. 5
|
| Settlement date: | Aug. 7
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Total outstanding: | $550 million, including $300 million of notes priced Feb. 26 at 99.72 to yield 3.984% and a spread of 135 bps over Treasuries
|
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