Published on 1/31/2018 in the Prospect News Investment Grade Daily.
New Issue: American Homes 4 Rent sells $500 million 4.25% 10-year notes with 158 bps spread
By Cristal Cody
Tupelo, Miss., Jan. 31 – American Homes 4 Rent LP sold $500 million of 4.25% 10-year senior notes (Baa3/BBB-) at a spread of 158 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission on Wednesday.
The notes priced at 99.442 to yield 4.319%.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
The notes are guaranteed by American Residential Properties OP, LP.
Proceeds will be used for general corporate purposes, including acquisitions, debt repayment, capital expenditures, expansion, redevelopment and/or improvement of properties, working capital and other general purposes, including securities repurchases.
American Homes is an Agoura Hills, Calif.-based real estate investment trust.
| Issuer: | American Homes 4 Rent, LP
|
| Guarantor: | American Residential Properties OP, LP
|
| Amount: | $500 million
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| Description: | Senior notes
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| Maturity: | Feb. 15, 2028
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Co-managers: | BBVA Securities Inc., Evercore Group LLC, Goldman Sachs & Co. LLC, JMP Securities LLC, Keefe, Bruyette & Woods, Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Samuel A. Ramirez & Co., Inc., U.S. Bancorp Investments, Inc. and Zelman Partners LLC
|
| Coupon: | 4.25%
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| Price: | 99.442
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| Yield: | 4.319%
|
| Spread: | Treasuries plus 158 bps
|
| Call features: | Make-whole call before Nov. 15, 2027 at greater of par and Treasuries plus 25 bps plus weekly yield for most recent week; thereafter at par
|
| Trade date: | Jan. 31
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| Settlement date: | Feb. 7
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
|
| Distribution: | SEC registered
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