Gaming and Leisure tightens yield talk in $2.05 billion three-part offering of notes

By Aleesia Forni

Virginia Beach, Va., Oct. 21 - Gaming and Leisure Properties, Inc. tightened yield talk in its $2.05 billion three-part offering of non-callable senior notes (Ba1/BBB-) on Tuesday, according to a market source.

The deal is coming in tranches of notes with five-, seven- and 10-year maturities.

The $550 million of five-year notes are talked to come with a yield of 4½% to 4 5/8%, tightened from original guidance in the 4¾% area.

The $1 billion seven-year notes are talked to come with a yield of 5% to 5 1/8%, tightened from guidance of a yield in the 5¼% area.

And the $500 million 10-year notes are talked to come with a yield of 5½% to 5 5/8%, tightened from guidance in the 5¾% area.

The source said the deal may price on Tuesday.

BofA Merrill Lynch is the left physical bookrunner for all three tranches and will bill and deliver for all three tranches.

For the five-year and 10-year tranches, J.P. Morgan Securities LLC and RBS Securities Inc. are also joint physical bookrunners and Credit Agricole CIB, Fifth Third Securities Inc., Goldman Sachs & Co., Nomura Securities Co. Ltd., UBS Investment Bank and Wells Fargo Securities LLC are joint bookrunners.

For the seven-year tranche, RBS and Goldman Sachs are also joint physical bookrunners and Credit Agricole, Fifth Third, JPMorgan, Nomura, UBS and Wells Fargo are joint bookrunners.

The notes in all three tranches come with make-whole calls at Treasuries plus 50 basis points and become callable at par 90 days prior to their respective maturities.

The notes in all three tranches also come with 101% poison puts.

Proceeds will be used to help finance the spinoff of Gaming and Leisure from Penn National Gaming.

The notes are in the market via GLP Capital LP and a corporate co-issuer, subsidiaries of Gaming and Leisure, a newly formed Wyomissing, Pa.-based real estate investment trust, which will own gaming assets throughout the United States.

Paul A. Harris contributed to this article

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