By Paul A. Harris
Portland, Ore., May 18 – Vereit, Inc. priced an upsized $1 billion of non-callable senior notes (Ba1/BB+) in two tranches on Wednesday, according to a market source.
The deal was twice upsized. Early Thursday the offering increased to $800 million from $500 million.
In addition to the upsizings, a second, shorter-maturity tranche was added.
The final saw $400 million of five year notes price at par to yield 4 1/8%, at the tight end of yield talk in the 4¼% area, and $600 million of 10-year notes price at par to yield 4 7/8%, at the tight end of yield talk in the 5% area.
J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., Capital One, Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the joint bookrunners.
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 about $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 are issued via Vereit Operating Partnership LP, the operating partnership of Vereit.
| Issuer: | Vereit Operating Partnership LP, the operating partnership of Vereit, Inc.
|
| Amount: | $1 billion, increased from $800 million after having earlier been increased from $500 million
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., Capital One, Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Co-managers: | BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Regions, Stifel, U.S. Bancorp Investments Inc.
|
| Trade date: | May 18
|
| Settlement date: | June 2
|
| Ratings: | Moody's: Ba1
|
| S&P: BB+
|
| Distribution: | SEC registered
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
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| Amount: | $400 million
|
| Maturity: | June 1, 2021
|
| Coupon: | 4 1/8%
|
| Price: | Par
|
| Yield: | 4 1/8%
|
| Spread: | 272 bps
|
| Call protection: | Non-callable
|
| Price talk: | 4¼% area
|
|
|
| 10-year notes
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| Amount: | $600 million
|
| Maturity: | June 1, 2026
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| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 301 bps
|
| Call protection: | Non-callable
|
| Price talk: | 5% area
|
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