Published on 1/30/2018 in the Prospect News Investment Grade Daily.
New Issue: Hospitality Properties Trust sells $400 million 4.375% notes due 2030 at 192 bps spread
By Cristal Cody
Tupelo, Miss., Jan. 30 – Hospitality Properties Trust sold $400 million of 4.375% 12-year senior notes (Baa2/BBB-) on Tuesday at 97.494 to yield 4.649%, according to a market source, a news release and an FWP filing with the Securities and Exchange Commission.
The notes priced at a spread of 192 basis points over Treasuries, on the tight side of guidance in the 195 bps spread area and better than initial talk in the 210 bps spread area.
Citigroup Global Markets Inc., BofA Merrill Lynch, PNC Capital Markets LLC, Regions Securities LLC and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used to repay debt 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: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 15, 2030
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch, PNC Capital Markets LLC, Regions Securities LLC and U.S. Bancorp Investments Inc.
|
| Lead managers: | BBVA Securities Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., UBS Securities LLC and Wells Fargo Securities, LLC
|
| Co-managers: | BB&T Capital Markets, BMO Capital Markets Corp., Fifth Third Securities, Inc., FTN Financial Securities Corp. and Samuel A. Ramirez & Co., Inc.
|
| Coupon: | 4.375%
|
| Price: | 97.494
|
| Yield: | 4.649%
|
| Spread: | Treasuries plus 192 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps before Aug. 15, 2029
|
| Trade date: | Jan. 30
|
| Settlement date: | Feb. 2
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 195 bps area
|
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