By Andrea Heisinger
New York, Aug. 1 - Entertainment Properties Trust sold $350 million of 5.75% 10-year senior notes on Wednesday at 99.998 to yield 5.75%, an informed source said.
The size was increased from $250 million, the source said.
The notes (Baa3/BB+/BBB-) were priced at 424.6 basis points over Treasuries - tighter than guidance in the 450 bps area.
There is a make-whole call at 50 bps over Treasuries until May 15, 2022 and a par call after that date.
Active bookrunners were Citigroup Global Markets Inc. and J.P. Morgan Securities LLC while Barclays Capital Inc. was a passive bookrunner.
Senior co-managers were Goldman Sachs & Co., RBC Capital Markets LLC and KeyBanc Capital Markets Inc.
U.S. Bancorp Investments Inc. and UMB Financial Services Inc. were the co-managers.
Proceeds will be used to repay $166.3 million of fixed-rate mortgage debt secured by a portion of rental properties, with the remainder used to reduce debt under an unsecured revolving credit facility.
The notes are guaranteed by the subsidiaries that guarantee the company's unsecured revolver, unsecured term loan facility and existing 7.75% senior notes due 2020.
Entertainment Properties, a real estate investment trust of theaters, entertainment complexes and specialty properties, was last in the market with a $250 million sale of 7.75% 10-year notes priced at 490.7 bps over Treasuries on June 25, 2010. The company is based in Kansas City, Mo.
| Issuer: | Entertainment Properties Trust
|
| Guarantors: | Certain subsidiaries
|
| Issue: | Senior notes
|
| Amount: | $350 million, increased from $250 million
|
| Maturity: | Aug. 15, 2022
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC (active), Barclays Capital Inc. (passive)
|
| Senior co-managers: | Goldman Sachs & Co., RBC Capital Markets LLC, KeyBanc Capital Markets Inc.
|
| Co-managers: | U.S. Bancorp Investments Inc., UMB Financial Services Inc.
|
| Coupon: | 5.75%
|
| Price: | 99.998
|
| Yield: | 5.75%
|
| Spread: | Treasuries plus 424.6 bps
|
| Call: | Make-whole at Treasuries plus 50 bps until May 15, 2022, par call after
|
| Trade date: | Aug. 1
|
| Settlement date: | Aug. 8
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB+
|
| Fitch: BBB-
|
| Price talk: | 450 bps area
|
© 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.
