EPR Properties prices $450 million; Flushing Financial sells $75 million fixed-to-floaters

By Devika Patel

Knoxville, Tenn., Dec. 7 – Primary activity in the investment-grade bond market included a $450 million sale of 4.75% notes due 2026 (Baa2/BBB-/BBB-) from Kansas City, Mo., real estate investment trust EPR Properties.

EPR priced the notes at Treasuries plus 260 basis points. The notes will be sold at 98.429 to yield 4.951%. The notes have a make-whole call at Treasuries plus 40 basis points until Sept. 15, 2026 and then a par call.

For the EPR notes, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets Corp. were the bookrunners. KeyBanc Capital Markets Inc. and U.S. Bancorp Investments Inc. were lead managers.

Also, Lake Success, N.Y., financial holding company Flushing Financial Corp. priced a $75 million offering of 5.25% fixed-to-floating rate subordinated notes due Dec. 15, 2026 at par. The notes were assigned an investment-grade rating of BBB by Kroll Bond Rating Agency.

Sandler O’Neill + Partners LP is the bookrunner, and Keefe, Bruyette & Woods is a co-manager for the Flushing sale.

The Flushing notes bear interest at a fixed rate until Dec. 15, 2021 and then carry a coupon equal to Libor plus 344 basis points. The notes are redeemable in whole but not in part at par plus interest on any interest payment date after Dec. 15, 2021.

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