Americold upsizes 10-year note offering to $325 million, boosts price talk to 7 7/8% area

By Paul A. Harris

St. Louis, May 5 - Price talk increased twice on the upsized Americold Warehouse Investment Portfolio $325 million offering of 10-year senior secured notes, market sources said on Wednesday.

The talk increased to a 7 7/8% area yield. Earlier in the session talk in the 7¾% area was heard.

The deal was talked late last week at the 7 5/8% area.

Pricing is set for Thursday morning.

Goldman Sachs & Co., Deutsche Bank Securities Inc. and RBC Capital markets Corp. are the bookrunners for the Rule 144A with registration rights offering, which was upsized from $300 million.

The notes come with five years of call protection. Additionally, a special call feature provides for up to 10% of the issue to be redeemable annually at 103.0 until 2013.

Credit ratings remain to be determined.

Proceeds, in addition to proceeds from a concurrent initial public offering of common shares, will be used to fund the acquisition of assets from Versacold and for general corporate purposes.

The prospective issuer is an Atlanta-based temperature-controlled warehouse real estate investment trust.

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