By Cristal Cody
Tupelo, Miss., Aug. 13 – Government Properties Income Trust priced an upsized $350 million offering of 3.75% five-year senior notes at 99.205 to yield 3.927% on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB-/) priced with a spread of 275 basis points over Treasuries.
The deal was upsized from $250 million.
Citigroup Global Markets Inc., Jefferies & Co., RBC Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunners. BofA Merrill Lynch and Morgan Stanley & Co. LLC were the lead managers.
Proceeds will be used to repay the $149.8 million remaining outstanding principal amount of the company’s $500 million term loan and to reduce amounts outstanding under its revolving credit facility.
The Newton, Mass.-based real estate investment trust owns properties leased primarily to U.S. and state governments.
| Issuer: | Government Properties Income Trust
|
| Amount: | $350 million
|
| Maturity: | Aug. 15, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., Jefferies & Co., RBC Capital Markets LLC, UBS Securities LLC
|
| Lead managers: | BofA Merrill Lynch, Morgan Stanley & Co. LLC
|
| Co-managers: | BB&T Capital Markets, BBVA Securities Inc., Comerica Securities, Inc., SMBC Nikko Securities America, Inc., Mizuho Securities USA Inc.
|
| Coupon: | 3.75%
|
| Price: | 99.205
|
| Yield: | 3.927%
|
| Spread: | Treasuries plus 275 bps
|
| Make-whole call: | Treasuries plus 35 bps
|
| Trade date: | Aug. 13
|
| Settlement date: | Aug. 18
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
|
| Distribution: | SEC registered
|
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