By Paul A. Harris
Portland, Ore., Oct. 23 - Gaming and Leisure Properties, Inc. priced $2.05 billion of non-callable senior notes (Ba1/BBB-) in three tranches on Wednesday, according to a syndicate source.
Left physical bookrunner BofA Merrill Lynch will bill and deliver.
The deal included a $550 million tranche of five-year notes, which priced at par to yield 4 3/8%. The yield printed 12.5 basis points inside of the 4½% to 4 5/8% yield talk, which was revised tighter from earlier talk in the 4¾% area.
Joint physical bookrunners were J.P. Morgan Securities LLC and RBS Securities Inc.
Gaming and Leisure also priced a $1 billion tranche of seven-year notes at par to yield 4 7/8%. Again the yield printed 12.5 bps inside of the revised 5% to 5 1/8% yield talk, which was tightened from earlier talk in the 5¼% area.
The joint physical bookrunners for the seven-year notes were RBS Securities and Goldman Sachs & Co.
The company also priced a $500 million tranche of 10-year notes at par to yield 5 3/8%. Once again, the yield printed 12.5 bps inside of the 5½% to 5 5/8% revised yield talk, which had tightened from earlier talk in the 5¾% area.
JPMorgan and RBS were the joint physical bookrunners for the 10-year notes.
Credit Agricole CIB, Fifth Third Securities Inc., Goldman Sachs, Nomura Securities Co. Ltd., UBS Investment Bank and Wells Fargo Securities LLC were joint bookrunners for all three tranches.
Proceeds will be used to help finance the spinoff of Gaming and Leisure from Penn National Gaming.
The issuing entities were GLP Capital LP and GLP Financing II, Inc., subsidiaries of Gaming and Leisure, a newly formed Wyomissing, Pa.-based real estate investment trust, which will own gaming assets throughout the United States.
| Issuers: | GLP Capital LP and GLP Financing II, Inc. (Gaming and Leisure Properties, Inc.)
|
| Amount: | $2.05 billion
|
| Securities: | Senior notes
|
| Left bookrunner, bill and deliver: BofA Merrill Lynch
|
| Joint bookrunners: | Credit Agricole CIB, Fifth Third Securities Inc., Goldman Sachs & Co., Nomura, UBS Investment Bank, Wells Fargo Securities LLC
|
| Call protection: | Non-callable (Par call 90 days prior to maturity)
|
| Make-whole: | Treasuries plus 50 bps
|
| Trade date: | Oct. 23
|
| Ratings: | Moody: Ba1
|
| Standard & Poor's: BBB-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $550 million
|
| Maturity: | Nov. 1, 2018
|
| Joint physical bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Spread: | 307 bps
|
| Price talk: | 4½% to 4 5/8%, tightened from 4¾% area
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Joint physical bookrunners: | BofA Merrill Lynch, RBS Securities Inc., Goldman Sachs & Co.
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 297 bps
|
| Price talk: | 5% to 5 1/8%, tightened from 5¼% area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Joint physical bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 286 bps
|
| Price talk: | 5½% to 5 5/8%, tightened from 5¾% area
|
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