By Aleesia Forni
Virginia Beach, June 16 – ERP Operating LP was in the market with a $1.2 billion two-part offering of notes (Baa1/BBB+/BBB+) in tranches due 2019 and 2044, according to a market source.
A $450 million tranche of 2.375% five-year issue of notes sold at 99.9 to yield 2.396%, or Treasuries plus 70 basis points.
There was also $750 million of 4.5% 30-year bonds priced with a spread of Treasuries plus 115 bps.
The notes sold at 99.297 to yield 4.543%.
The bookrunners were BofA Merrill Lynch, Deutsche Bank Securities Inc. and UBS Securities LLC.
Proceeds will be used for working capital and general corporate purposes, including repayment of the balance under a revolving credit facility and term loan facility.
The unit of apartment property builder and manager Equity Residential is based in Chicago.
| Issuer: | ERP Operating LP
|
| Issue: | Senior notes
|
| Amount: | $1.2 billion
|
| Joint bookrunners: | BofA Merrill Lynch, Deutsche Bank Securities Inc., UBS Securities LLC.
|
| Trade date: | June 16
|
| Settlement date: | June 19
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC-registered
|
|
|
| Five-year notes
|
| Amount: | $450 million
|
| Maturity: | July 1, 2019
|
| Coupon: | 2.375%
|
| Price: | 99.9%
|
| Yield: | 2.396%
|
| Spread: | Treasuries plus 70 bps
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | July 1, 2044
|
| Coupon: | 4.5%
|
| Price: | 99.297
|
| Yield: | 4.543%
|
| Spread: | Treasuries plus 115 bps
|
|
|
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