By Paul A. Harris
Portland, Ore., Aug. 7 – Greystar Real Estate Partners, LLC priced a $400 million issue of seven-year senior secured notes (Ba3/BB-) at par to yield 7¾% on Monday, according to market sources.
The yield printed at the tight end of the 7¾% to 8% yield talk. Initial guidance was in the 8% area.
The deal was heard to have played to $700 million of demand, a sellside source said, adding that the new Greystar 7¾% notes broke to par ¼ bid, par ¾ offered.
J.P. Morgan Securities LLC, Capital One Securities Inc., Wells Fargo Securities LLC and BofA Securities Inc. were 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.
| Issuer: | Greystar Real Estate Partners, LLC
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| Amount: | $400 million
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| Maturity: | Sept. 1, 2030
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| Securities: | Senior secured notes
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| Bookrunners: | J.P. Morgan Securities LLC, Capital One Securities Inc., Wells Fargo Securities LLC, BofA Securities Inc.
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| Coupon: | 7¾%
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| Price: | Par
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| Yield: | 7¾%
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| Spread: | Treasuries plus 363 bps
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| First call: | Sept. 1, 2026 at 103.875
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| Special call: | 10% of notes callable annually at 103 during non-call period
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| Trade date: | Aug. 7
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| Ratings: | Moody’s: Ba3
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| S&P: BB-
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 7¾% to 8%
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| Marketing: | Roadshow
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