By Andrea Heisinger
New York, March 25 - American Campus Communities Operating Partnership LP was in Monday's market with an upsized $400 million sale of 3.75% 10-year senior notes (Baa3/BBB-/) priced at 187.5 basis points over Treasuries, a market source said.
Initial guidance was in the Treasuries plus 205 bps area, the source said. The size was increased from $300 million.
Pricing was at 99.659 to yield 3.791%. There is a make-whole call at Treasuries plus 30 bps to Jan. 15, 2023, with a par call after that date.
Bookrunners were BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Proceeds will be used to repay the outstanding balance of a revolving credit facility fund currently for a current development pipeline, potential acquisitions of student housing properties and for general business purposes.
The notes are guaranteed by American Campus Communities Inc.
The real estate investment trust for student housing is based in Austin, Texas.
| Issuer: | American Campus Communities Operating Partnership LP
|
| Guarantor: | American Campus Communities Inc.
|
| Issue: | Notes
|
| Amount: | $400 million, upsized from $300 million
|
| Maturity: | 2023
|
| Bookrunners: | BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | PNC Capital Markets LLC, KeyBanc Capital Markets Inc., U.S. Bancorp Investments, Inc.
|
| Co-managers: | Capital One Southcoast, Inc., Regions Securities LLC, Sandler O'Neill & Partners LP
|
| Coupon: | 3.75%
|
| Price: | 99.659
|
| Yield: | 3.791%
|
| Spread: | Treasuries plus 187.5 bps
|
| Call: | Make-whole at Treasuries plus 30 bps to Jan. 15, 2023, par call after
|
| Trade date: | March 25
|
| Settlement date: | April 2
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Price talk: | 205 bps area
|
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