New Issue: Sun Communities prices $500 million 5.5% notes due 2029 at Treasuries plus 155 bps

By Wendy Van Sickle

Columbus, Ohio, Jan. 4 – Sun Communities Operating LP sold $500 million of 5.5% five-year senior notes (Baa3/BBB) at 99.878 to yield 5.528% on Thursday, according to an FWP filed with the Securities and Exchange Commission.

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

The notes priced with a 155 basis points spread over Treasuries.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities Inc., BMO Capital Markets Corp., Citizens JMP Securities, LLC, Fifth Third Securities, Inc., RBC Capital Markets LLC and Wells Fargo Securities LLC are the joint bookrunning managers for the offering.

Proceeds will be used to repay borrowings under the company’s senior credit facility and for working capital and general corporate purposes. The company’s senior credit facility is comprised of a revolving loan facility up to $3.05 billion, of which $1 billion was outstanding, and a term loan facility of $1.15 billion, $1.1 billion of which was outstanding, as of Sept. 30. The loans mature April 7, 2026 and April 7, 2025, respectively.

Sun Communities is a Southfield, Mich.-based fully integrated real estate investment trust, an owner of manufactured housing communities and recreational vehicle communities.

Issuer:	Sun Communities Operating LP
Guarantor:	Sun Communities, Inc.
Amount:	$500 million
Issue:	Senior notes
Maturity:	Jan. 15, 2029
Bookrunners:	Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities, Inc., BMO Capital Markets Corp., Citizens JMP Securities, LLC, Fifth Third Securities, Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC
Co-managers:	Huntington Securities, Inc., Regions Securities LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc., U.S. Bancorp Investments, Inc., PNC Capital Markets LLC, Wedbush Securities Inc., Goldman Sachs & Co. LLC, Scotia Capital (USA) Inc. and Samuel A. Ramirez & Co., Inc.
Trustee:	UMB Bank, NA
Counsel to issuer:	Taft Stettinius & Hollister LLP, Hunton Andrews Kurth LLP (special counsel) and Baker, Donelson, Bearman, Caldwell & Berkowitz (Maryland law)
Counsel to underwriters:	Paul Hastings LLP
Coupon:	5.5%
Price:	99.878
Yield:	5.528%
Spread:	Treasuries plus 155 bps
Call features:	Make-whole at Treasuries plus 25 bps until Dec. 15, 2028; par call thereafter
Trade date:	Jan. 4
Settlement date:	Jan. 11
Ratings:	Moody’s: Baa3
	S&P: BBB
Distribution:	SEC registered
Cusip:	866677AK3

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