Published on 2/22/2021 in the Prospect News Investment Grade Daily.
New Issue: Spirit Realty prices $800 million senior notes due 2028, 2032 in two parts
By Wendy Van Sickle
Columbus, Ohio, Feb. 22 – Spirit Realty, LP sold $800 million of senior notes in two parts on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $450 million 2.1% senior notes due March 15, 2028 at 99.634 to yield 2.198%. The notes priced at a spread of Treasuries plus 120 bps. Initial price talk for the 2028 notes was in the Treasuries plus 150 bps area.
Also, $350 million of 2.7% senior notes due Feb. 15, 2032 were sold at 99.344 to yield 2.77%. The notes priced at a spread of Treasuries plus 140 bps. Initial price talk for the 2032 notes is in the Treasuries plus 170 bps area.
BofA Securities, Inc., RBC Capital Markets Corp., Wells Fargo Securities LLC, Capital One Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc. and Truist Securities Inc. were the joint bookrunners.
The notes are guaranteed by Spirit Realty Capital, Inc.
Proceeds will be used to repay or repurchase debt, to repay borrowings under the operating partnership’s revolving credit facility and for general corporate purposes, including repaying or repurchasing other debt, working capital, acquisitions and capital expenditures.
Spirit Realty Capital is a Dallas-based net-lease real estate investment trust.
| Issuer: | Spirit Realty, LP
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| Guarantor: | Spirit Realty Capital, Inc.
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| Amount: | $800 million
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| Description: | Senior notes
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| Bookrunners: | BofA Securities, Inc., RBC Capital Markets Corp., Wells Fargo Securities LLC, Capital One Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc. and Truist Securities Inc.
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| Co-managers: | Fifth Third Securities, Inc., Regions Securities LLC, Stifel, Nicolaus & Co., Inc., U.S. Bancorp Investments, Inc. and Samuel A. Ramirez & Co., Inc.
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| Trade date: | Feb. 22
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| Settlement date: | March 3
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| Ratings: | Moody’s: Baa3
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| 2028 notes
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| Amount: | $450 million
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| Maturity: | March. 15, 2028
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| Coupon: | 2.1%
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| Price: | 99.634
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| Yield: | 2.198%
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| Spread: | Treasuries plus 120 bps
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| Talk: | Treasuries plus 150 bps area
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| Call features: | Make-whole call before Jan. 15, 2028 at Treasuries plus 20 bps; thereafter at par
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| 2032 notes
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| Amount: | $350 million
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| Maturity: | Feb. 15, 2032
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| Coupon: | 2.7%
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| Price: | 99.344
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| Yield: | 2.77%
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| Spread: | Treasuries plus 140 bps
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| Talk: | Treasuries plus 170 bps area
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| Call features: | Make-whole call before Nov. 15, 2031 at Treasuries plus 25 bps; thereafter at par
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