By Cristal Cody
Tupelo, Miss., June 9 – American Campus Communities Operating Partnership LP priced an upsized $400 million of 3.875% guaranteed senior notes due Jan. 30, 2031 on Tuesday at 99.142 to yield 3.974%, or a spread of Treasuries plus 315 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes (Baa2/BBB) were talked to price in the Treasuries plus 365 bps area.
The deal was upsized from $350 million.
Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BofA Securities, Inc., Capital One Securities, Inc., KeyBanc Capital Markets Inc. and Wells Fargo Securities, LLC were the bookrunners.
The notes are guaranteed by American Campus Communities Inc.
The company held fixed income investor calls for the offering.
Proceeds will be used to repay borrowings under its revolving credit facility, to fund projects in its current development pipeline and for general business purposes.
The real estate investment trust for student housing is based in Austin, Tex.
| Issuer: | American Campus Communities Operating Partnership LP
|
| Guarantor: | American Campus Communities Inc.
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Jan. 30, 2031
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BofA Securities, Inc., Capital One Securities, Inc., KeyBanc Capital Markets Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | BBVA Securities Inc., Piper Sandler & Co., PNC Capital Markets LLC, Regions Securities LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.875%
|
| Price: | 99.142
|
| Yield: | 3.974%
|
| Spread: | Treasuries plus 315 bps
|
| Call features: | Make-whole call before Oct. 30, 2030 at price equal to greater of par and Treasuries plus 50 bps; thereafter at par
|
| Trade date: | June 9
|
| Settlement date: | June 11
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 365 bps area
|
| Marketing: | Fixed income investor calls
|
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