Published on 3/5/2014 in the Prospect News Investment Grade Daily.
New Issue: Hospitality Properties prices upsized $350 million 10-year notes at 200 bps over Treasuries
By Aleesia Forni
Virginia Beach, March 5 - Hospitality Properties Trust was in Wednesday's market with an upsized $350 million issue of 4.65% senior notes due 2024, which sold with a spread of 200 basis points over Treasuries, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes (Baa2/BBB-/) priced at 99.683 to yield 4.69%.
Citigroup Global Markets Inc., RBC Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used to repay amounts outstanding under the company's revolving credit facility and for general business purposes.
The real estate investment trust is based in Newton, Mass.
| Issuer: | Hospitality Properties Trust
|
| Amount: | $350 million, upsized from $250 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2024
|
| Bookrunners: | Citigroup Global Markets Inc., RBC Capital Markets LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Joint lead managers: | BofA Merrill Lynch, BBVA Securities Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, Regions Securities LLC
|
| Co-managers: | BB&T Capital Markets, Capital One Securities, Inc., Comerica Securities, Inc., Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., RBS Securities Inc., Santander Investment Securities Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, | Inc.
|
| Coupon: | 4.65%
|
| Price: | 99.683
|
| Yield: | 4.69%
|
| Spread: | Treasuries plus 200 bps
|
| Trade date: | March 5
|
| Settlement date: | March 15
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Price guidance: | Treasuries plus low-200 bps area
|
| Make-whole call: | Treasuries plus 30 bps prior to Sept. 15, 2023, then callable at par
|
| Distribution: | SEC-registered
|
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