By Aleesia Forni
Virginia Beach, Sept. 15 – American Campus Communities Operating Partnership LP was in the market Tuesday with an upsized $400 million offering of 3.35% five-year senior notes (Baa3/BBB-) sold with a spread of Treasuries plus 180 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Pricing was at 99.811 to yield 3.391%.
The notes sold at the tight end of guidance set in the 180 bps to 185 bps range over Treasuries following initial talk set in the 195 bps area over Treasuries.
Bookrunners are Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Merrill Lynch and U.S. Bancorp Investments Inc.
The deal’s size was increased from $300 million.
Proceeds will be used to repay the outstanding balance of a revolving credit facility, to fund the current development pipeline and potential acquisitions of student housing properties and for general business purposes.
The notes are guaranteed by American Campus Communities Inc.
The real estate investment trust for student housing is based in Austin, Texas.
| Issuer: | American Campus Communities Operating Partnership LP
|
| Guarantor: | American Campus Communities Inc.
|
| Amount: | $400 million, upsized from $300 million
|
| Description: | Senior notes
|
| Maturity: | Oct. 1, 2020
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, U.S. Bancorp Investments Inc.
|
| Co-managers: | BBVA Securities Inc., Capital One Securities, Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC, Regions Securities LLC
|
| Coupon: | 3.35%
|
| Price: | 99.811
|
| Yield: | 3.391%
|
| Spread: | Treasuries plus 180 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Sept. 1, 2020, then callable at par
|
| Trade date: | Sept. 15
|
| Settlement date: | Sept. 22
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 180 bps to 185 bps, tightened from Treasuries plus 195 bps area
|
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