Chicago, March 18 – STAG Industrial, Inc. through borrower STAG Industrial Operating Partnership, LP placed $450 million of notes in three parts, according to an 8-K filing with the Securities and Exchange Commission.
The placement includes $175 million of 6.05% five-year notes, $125 million of 6.17% seven-year notes and $150 million of 6.3% 10-year notes.
The notes will be callable early at par plus a make-whole amount of Treasuries plus 50 basis points, provided that the company purchases at least 5% of the principal amount of notes then outstanding.
In terms of covenants, the agreement is similar to the company’s credit facility, except the notes agreement requires the company to maintain a minimum interest coverage ratio of at least 1.5x.
BofA Securities, Inc. and TD Securities (USA) LLC were the agents.
Proceeds will be used to repay debt under the company’s credit facility and for general corporate purposes, including funding future acquisitions.
STAG is a Boston-based real estate investment trust.
| Issuer: | STAG Industrial Operating Partnership, LP
|
| Guarantor: | STAG Industrial, Inc.
|
| Amount: | $450 million
|
| Issue: | Notes
|
| Agents: | BofA Securities, Inc. and TD Securities (USA) LLC
|
| Counsel to issuer: | DLA Piper LLP (US)
|
| Counsel to purchasers: | Chapman and Cutler LLP
|
| Trade date: | March 13
|
| Settlement date: | May 28
|
| Distribution: | Private placement
|
|
|
| Series A
|
| Amount: | $175 million
|
| Issue: | Senior guaranteed notes
|
| Maturity: | May 28, 2029
|
| Coupon: | 6.05%
|
| Price: | Par
|
| Yield: | 6.05%
|
| Call features: | Make-whole call at Treasuries plus 50 bps
|
| Change of control: | At par
|
|
|
| Series B
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| Amount: | $125 million
|
| Issue: | Senior guaranteed notes
|
| Maturity: | May 28, 2031
|
| Coupon: | 6.17%
|
| Price: | Par
|
| Yield: | 6.17%
|
| Call features: | Make-whole call at Treasuries plus 50 bps
|
| Change of control: | At par
|
|
|
| Series C
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| Amount: | $150 million
|
| Issue: | Senior guaranteed notes
|
| Maturity: | May 28, 2034
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| Coupon: | 6.3%
|
| Price: | Par
|
| Yield: | 6.3%
|
| Call features: | Make-whole call at Treasuries plus 50 bps
|
| Change of control: | At par
|
|
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