By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, May 5 – Agree LP priced an upsized $650 million of notes in two tranches (Baa2/BBB) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company planned to sell $600 million of notes in two tranches of $300 million each, but one tranche was upsized by $50 million.
The company priced $350 million of 2% notes due June 15, 2028 at Treasuries plus 85 basis points, compared to talk in the Treasuries plus 115 bps area. These notes priced at 99.265 to yield 2.112%.
Agree priced $300 million of 2.6% notes due June 15, 2033 at Treasuries plus 110 bps, compared to talk in the Treasuries plus 140 bps area. These notes priced at 99.136 to yield 2.684%.
The notes in both tranches feature a make-whole call and then a par call.
Citigroup Global Markets Inc., Wells Fargo Securities LLC and PNC Capital Markets LLC are the joint bookrunners.
The notes are guaranteed by Agree Realty Corp.
Proceeds will be used to repay debt under the company’s revolving credit facility and its unsecured term loan facilities, to settle certain swap agreements and for general corporate purposes.
Agree, based in Bloomfield Hills, Mich., is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants.
| Issuer: | Agree LP
|
| Guarantor: | Agree Realty Corp. and certain Agree LP subsidiaries
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| Issue: | Notes
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| Amount: | $650 million
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| Bookrunners: | Citigroup Global Markets Inc., Wells Fargo Securities LLC and PNC Capital Markets LLC
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| Co-managers: | J.P. Morgan Securities LLC, Stifel, Nicolaus & Co., Inc., Capital One Securities, Inc., Mizuho Securities USA LLC, Trusts Securities, Inc., U.S. Bancorp Investments, Inc.
|
| Trade date: | May 5
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| Settlement date: | May 14
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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|
|
| Seven-year notes
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| Amount: | $350 million
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| Maturity: | June 15, 2028
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| Coupon: | 2%
|
| Price: | 99.265
|
| Yield: | 2.112%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until April 15, 2028, then par call
|
| Talk: | Treasuries plus 115 bps area
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|
|
| 12-year notes
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| Amount: | $300 million
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| Maturity: | June 15, 2033
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| Coupon: | 2.6%
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| Price: | 99.136
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| Yield: | 2.684%
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| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until March 15, 2033, then par call
|
| Talk: | Treasuries plus 140 bps area
|
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