By Cristal Cody
Tupelo, Miss., Jan. 15 – American Campus Communities Operating Partnership LP sold $400 million of 2.85% 10-year guaranteed senior notes on Wednesday at 99.81 to yield 2.872%, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes (Baa2/BBB) priced at a spread of Treasuries plus 108 basis points.
Initial price talk was in the Treasuries plus 125 bps to 130 bps area.
Bookrunners were U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BBVA Securities Inc., BofA Securities, Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC.
The notes are guaranteed by American Campus Communities Inc.
Proceeds will be used to redeem the company’s $400 million of 3.35% senior notes due 2020.
The real estate investment trust for student housing is based in Austin, Tex.
| Issuer: | American Campus Communities Operating Partnership LP
|
| Guarantor: | American Campus Communities Inc.
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 1, 2030
|
| Bookrunners: | U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BBVA Securities Inc., BofA Securities, Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC
|
| Co-managers: | Capital One Securities, Inc., Jefferies LLC, KeyBanc Capital Markets Inc., Piper Sandler & Co. and Regions Securities LLC
|
| Coupon: | 2.85%
|
| Price: | 99.81
|
| Yield: | 2.872%
|
| Spread: | Treasuries plus 108 bps
|
| Call features: | Make-whole call before Nov. 1, 2029 at price equal to greater of par and Treasuries plus 20 bps; thereafter at par
|
| Trade date: | Jan. 15
|
| Settlement date: | Jan. 30
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 125 bps-130 bps area
|
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