Sun Communities eyes new notes, tap of 2031 notes; talk emerges

By Rebecca Melvin and Cristal Cody

Concord, N.H., Sept. 28 – Sun Communities Operating LP is offering new fixed-rate senior notes and a tap of its 2.7% senior notes due 2031, according to a 424B5 filing with the Securities and Exchange Commission.

The new notes due Nov. 1, 2028 are talked to yield in the 125 basis points area over Treasuries, a market source said. The tranche has a par call a few months ahead of its maturity.

The add-on to the company’s 2.7% notes due July 15, 2031 is talked to yield in the 135 bps area over Treasuries.

The notes, which will be additional notes of a series of $600 million of notes issued on June 28, are redeemable for a make-whole premium plus accrued interest prior to their par call date.

Both tranches will be guaranteed by Sun Communities, Inc., a Southfield, Mich.-based real estate investment trust.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the bookrunners.

Proceeds will be used to fund possible acquisitions of properties and for working capital and general corporate purposes.

Sun Communities Operating is the primary operating subsidiary of Sun Communities, Inc.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.