Published on 6/30/2021 in the Prospect News Investment Grade Daily.
New Issue: American Homes 4 Rent sells $750 million senior notes in two parts
By Wendy Van Sickle
Columbus, Ohio, June 30 – American Homes 4 Rent LP priced $750 million of notes in two tranches (Baa3/BBB-) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $450 million of 2.375% notes due 2031 at 98.513 to yield 2.544%, or a spread of 110 basis points over Treasuries.
The issuer priced $300 million of 3.375% notes due 2051 at 97.962 to yield 3.485%, or a spread of 140 bps over Treasuries.
The notes have a make-whole call and are then redeemable at par.
BofA Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, Raymond James & Associates, Inc. and U.S. Bancorp Investments, Inc. are the bookrunners.
Proceeds will be used to repay debt under the company's revolving credit facility and for general corporate purposes.
American Homes is an Agoura Hills, Calif.-based real estate investment trust.
| Issuer: | American Homes 4 Rent LP
|
| Issue: | Notes
|
| Amount: | $750 million
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, Raymond James & Associates, Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Mizuho Securities USA LLC, Scotia Capital (USA) Inc., Regions Securities LLC, RBC Capital Markets, LLC and Samuel A. Ramirez & Co., Inc.
|
| Pricing date: | June 30
|
| Settlement date: | July 8
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
|
|
| 10-year notes
|
| Amount: | $450 million
|
| Maturity: | July 15, 2031
|
| Coupon: | 2.375%
|
| Price: | 98.513
|
| Yield: | 2.544%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until April 15, 2031, then at par
|
|
|
| 30-year notes
|
| Amount: | $300 million
|
| Maturity: | July 15, 2051
|
| Coupon: | 3.375%
|
| Price: | 97.962
|
| Yield: | 3.485%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until Jan. 15, 2051, then at par
|
|
|
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