By Cristal Cody
Tupelo, Miss., Aug. 14 – Lexington Realty Trust priced $400 million of 2.7% 10-year senior notes (Baa2/BBB-/BBB) on Friday at 99.233 to yield 2.788%, or spread of Treasuries plus 210 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced tighter than initial talk at the Treasuries plus 275 bps area and tighter than guidance of Treasuries plus 225 bps.
The offering was upsized from $300 million.
The bookrunners were J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities, Inc., Jefferies LLC, KeyBanc Capital Markets Inc., Regions Securities LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
Lexington Realty Trust held fixed income investor calls for the offering on Thursday.
Proceeds will fund a cash tender offer for up to $300 million of the company’s $250 million of 4.25% senior notes due 2023 and its $250 million of 4.4% senior notes due 2024.
Lexington is a New York-based real estate investment trust for office, industrial and retail properties.
| Issuer: | Lexington Realty Trust
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Sept. 15, 2030
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities, Inc., Jefferies LLC, KeyBanc Capital Markets Inc., Regions Securities LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Senior co-managers: | Mizuho Securities USA LLC, Stifel, Nicolaus & Co., Inc. and Truist Securities, Inc.
|
| Co-managers: | FHN Financial Securities Corp. and Samuel A. Ramirez & Co., Inc.
|
| Coupon: | 2.7%
|
| Price: | 99.233
|
| Yield: | 2.788%
|
| Spread: | Treasuries plus 210 bps
|
| Call feature: | Make-whole call at Treasuries plus 35 bps
|
| Trade date: | Aug. 14
|
| Settlement date: | Aug. 28
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
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| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 225 bps; initial talk at Treasuries plus 275 bps area
|
| Marketing: | Fixed income investor calls
|
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