Vereit upsizes notes to $800 million, adds five-year bullet tranche, sets talk; pricing Wednesday

By Paul A. Harris

Portland, Ore., May 18 – Vereit, Inc. upsized its offering of non-callable senior notes to $800 million from $500 million with the addition of a shorter-maturity tranche, a market source said on Wednesday.

Talk also circulated on the public offering, which is expected to price Wednesday.

The originally announced tranche of 10-year notes is talked at 5%. Talk tightened from the 5 1/8% early guidance. The single-tranche deal was said to be playing to a $2 billion order book late Tuesday, according to a portfolio manager.

With the upsize that was announced on Wednesday morning came the addition of a tranche of five-year notes talked to yield 4¼%.

Tranche sizes remain to be determined.

J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., Capital One, Goldman Sachs & Co. and Morgan Stanley & Co. LLC are joint bookrunners.

BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Regions Securities, Stifel Nicolaus and U.S. Bancorp Investments Inc. are the co-managers.

The Phoenix-based manager of retail, restaurant, office and industrial real estate assets plans to use the proceeds, together with proceeds from a concurrent new $300 million term loan A and approximately $27 million of cash on hand or a draw on its revolver, to fund the redemption of $800 million of 2% senior notes due 2017.

The notes will be issued via Vereit Operating Partnership LP, the operating partnership of Vereit.

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