By Marisa Wong
Los Angeles, June 3 – InvenTrust Properties Corp. entered into a note purchase agreement on June 3 for the private placement of $250 million aggregate principal amount of senior notes, according to an 8-K filing with the Securities and Exchange Commission.
InvenTrust priced $150 million of 5.07% senior notes, series A, due Aug. 11, 2029 and $100 million of 5.2% senior notes, series B, due Aug. 11, 2032.
Combined, the notes are expected to have a weighted average tenor of about 8.2 years and a weighted average fixed interest rate of 5.12%, according to a press release.
The notes are expected to be issued on Aug. 11.
The notes will be guaranteed by some subsidiaries that guarantee some of the company’s material credit facilities.
The company may prepay at any time all or some of the notes, subject to a minimum amount of 5% of the aggregate principal amount of any series of the notes then outstanding, at par plus accrued interest and a make-whole amount.
The note purchase agreement contains various restrictive covenants, including total and unsecured leverage ratios, a fixed-charge coverage ratio, an unsecured interest coverage ratio and a secured recourse leverage ratio. The agreement also contains a “most favored lender” provision, under which additional financial covenants and negative covenants will be included to the extent those covenants are incorporated into some of the company’s existing or future material credit facilities and to the extent those covenants are more favorable to the lenders under those material credit facilities than the covenants contained in the note purchase agreement.
The Downers Grove, Ill.-based real estate investment trust intends to use note proceeds for general corporate purposes, including the repayment of debt and future acquisitions.
| Issuer: | InvenTrust Properties Corp.
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| Amount: | $250 million
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| Issue: | Senior notes
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| Agent: | J.P. Morgan Securities, Inc.
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| Purchasers: | American General Life Insurance Co. and Variable Annuity Life Insurance Co.; Massachusetts Mutual Life Insurance Co.; MassMutual Ascend Life Insurance Co.; MUFG Fund Services (Cayman) Ltd. acting as trustee of Bright – II Fund, a sub-fund of Global Private Credit Umbrella Unit Trust; MUFG Fund Services (Cayman) Ltd. acting as trustee of Bright – IV Fund, a sub-fund of Global Private Credit Umbrella Unit Trust; Security Life of Denver Insurance Co., Corporate Solutions Life Reinsurance Co., American Security Insurance Co., Consumer Program Administrators, Inc., United Service Protection Corp., Virginia Surety Co., Inc., American Bankers Insurance Co. of Florida, Federal Warranty Service Corp. and Selective Insurance Co, of the Southeast; Savings Bank Mutual Life Insurance Co. of Massachusetts; United of Omaha Life Insurance Co.; Thrivent Financial For Lutherans; Modern Woodmen of America; CMFG Life Insurance Co.; American Memorial Life Insurance Co.; Farm Bureau Life Insurance Co.; Farm Bureau Property & Casualty Insurance Co.; Southern Farm Bureau Life Insurance Co.
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| Pricing date: | June 3
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| Settlement date: | Aug. 11
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| Distribution: | Private placement
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| Series A notes
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| Amount: | $150 million
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| Maturity: | Aug. 11, 2029
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| Coupon: | 5.07%
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| Series B notes
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| Amount: | $100 million
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| Maturity: | Aug. 11, 2032
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| Coupon: | 5.2%
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