By Paul Deckelman
New York, Feb. 10 - B.F. Saul Real Estate Investment Trust priced a $250 million offering of 10-year senior secured notes at par to yield 7½%, according to a syndicate source.
The deal priced at the tight end of talk, which originally called for a yield of between 7½% and 8% but was later tightened to between 7½% and 7¾%.
The Rule 144A offering came to market via sole bookrunner Friedman Billings Ramsey and co-manager Lehman Brothers.
The notes are non-callable for five years.
B.F. Saul, a Bethesda, Md.-based real estate company, plans to use proceeds to redeem existing senior secured notes.
Issuer: B.F. Saul Real Estate Investment Trust
| Issue: | Senior secured notes
|
| Bookrunner: | Friedman Billings Ramsey
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| Co-Manager: | Lehman Brothers
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| Amount: | $250 million
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| Maturity: | March 1, 2014
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| Coupon: | 7½%
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| Price: | Par
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| Yield: | 7½%
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| Spread: | 344 basis points over 4¼% U.S. Treasury note due November 2013
|
| Call schedule: | From March 1, 2009 at 103.75, then 102.50, 101.25 and par
|
| Settlement date: | Feb. 25 (T+10)
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| Ratings: | Moody's: B3
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| S&P: B+
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