Greystar Real Estate talks $400 million seven-year secured notes to yield 7¾% to 8%; pricing Monday

By Paul A. Harris

Portland, Ore., Aug. 7 – Greystar Real Estate Partners, LLC talked its $400 million offering of seven-year senior secured notes (Ba3/BB-) to yield 7¾% to 8%, according to market sources.

Official talk comes tight to initial guidance in the 8% area.

The deal is heard to be playing to $700 million of demand, including $380 million of reverse inquiry, a sellside source said.

It is set to price Monday afternoon.

The Rule 144A and Regulation S notes are subject to an initial call after three years at par plus 50% of the coupon.

J.P. Morgan Securities LLC, Capital One Securities Inc., Wells Fargo Securities LLC and BofA Securities Inc. are the joint bookrunners.

The Charleston, S.C.-based real estate company plans to use the proceeds plus proceeds from a concurrent $400 million term loan to redeem its 5¾% senior secured notes due 2025, to repay revolving credit facility borrowings and for general corporate purposes.

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