Published on 3/9/2015 in the Prospect News Investment Grade Daily.
New Issue: Columbia Property sells upsized $350 million 4.15% 10-year notes at 197 bps spread
By Aleesia Forni
Virginia Beach, March 9 – Columbia Property Trust Operating Partnership LP priced an upsized $350 million offering of 4.15% subordinated notes due 2025 on Monday at Treasuries plus 197 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
The company originally planned to sell $250 million of notes.
The notes (Baa2/BBB-/) priced at 99.859 to yield 4.167%.
Pricing was at the tight end of the Treasuries plus 200 bps area guidance. Initial talk was set in the 215 bps area over Treasuries.
The notes are guaranteed by Columbia Property Trust Inc.
Bookrunners were J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.
The company will use the proceeds to repay its $300 million unsecured term loan and for general corporate purposes.
Columbia Property Trust is an Atlanta-based real estate investment trust that invests in commercial office properties.
| Issuer: | Columbia Property Trust Operating Partnership LP
|
| Guarantor: | Columbia Property Trust Inc.
|
| Amount: | $350 million, upsized from $250 million
|
| Description: | Subordinated tier 2 notes
|
| Maturity: | April 1, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | Goldman Sachs & Co., Regions Securities LLC, MUFG, BBVA Securities Inc., BMO Capital Markets Corp., Capital One Securities, Inc., Comerica Securities, Inc., Fifth Third Securities, Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC
|
| Coupon: | 4.15%
|
| Price: | 99.859
|
| Yield: | 4.167%
|
| Spread: | 197 bps over Treasuries
|
| Make-whole call: | 30 bps over Treasuries prior to Jan. 1, 2025, then callable at par
|
| Trade date: | March 9
|
| Settlement date: | March 12
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | 200 bps over Treasuries, tightened from 215 bps area
|
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