By Andrea Heisinger
New York, Sept. 12 - Washington Real Estate Investment Trust priced an upsized $300 million of 3.95% 10-year notes on Wednesday to yield Treasuries plus 225 basis points, a source close to the trade said.
The size of the deal was increased from $250 million. There was price guidance in the 250 bps area, with the bonds selling tighter than that level.
The notes (Baa2/BBB/) sold at 99.438 to yield 4.018%.
There is a make-whole call option at Treasuries plus 35 bps until July 15, 2022 and a par call after that date.
Bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Proceeeds will be used to repay borrowings under lines of credit and for general corporate purposes.
The equity REIT for a variety of property types is based in Rockville, Md.
| Issuer: | Washington REIT
|
| Issue: | Notes
|
| Amount: | $300 million, upsized from $250 million
|
| Maturity: | Oct. 15, 2022
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | Bank of America Merrill Lynch, Raymond James & Associates, Stifel Nicholas Weisel, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 3.95%
|
| Price: | 99.438
|
| Yield: | 4.018%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps until July 15, 2022, par call after
|
| Trade date: | Sept. 12
|
| Settlement date: | Sept. 17
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Price talk: | 250 bps area
|
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