By Rebecca Melvin
New York, Nov. 22 - American Residential Properties OP, LP, a subsidiary of American Residential Properties Inc., priced $100 million of five-year exchangeable senior notes after the market close Thursday to yield 3.25% with an initial exchange premium of 22.5%, according to a news release.
The Rule 144A offering, which has a $15 million greenshoe, priced at the cheap end of talk, which was for a 2.75% to 3.25% coupon and a 22.5% to 27.5% initial exchange premium.
Bookrunners included Morgan Stanley & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Barclays and Jefferies LLC.
Proceeds are intended to repay amounts outstanding under the company's senior secured revolving credit facility.
Memphis, Tenn.-based American Residential is a heating, air conditioning, ventilation and plumbing services provider.
| Issuer: | American Residential Properties OP LP
|
| Guarantor: | American Residential Properties Inc.
|
| Issue: | Exchangeable senior notes
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | Nov. 15, 2018
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Barclays, Jefferies LLC
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Initial exchange premium: | 22.5%
|
| Exchange price: | $21.30
|
| Exchange ratio: | 46.9423 shares
|
| Calls: | Non-callable
|
| Price talk: | 2.75%-3.25%, up 22.5%-27.5%
|
| Pricing date: | Nov. 21
|
| Settlement date: | Nov. 27
|
| Stock symbol: | Nasdaq: ARPI
|
| Stock reference price: | $17.39 at close Nov. 21
|
| Distribution: | Rule 144A
|
| Market capitalization: | $564.9 million
|
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