By Rebecca Melvin
Concord, N.H., Jan. 14 – NE Property BV, a subsidiary of NEPI Rockcastle plc, priced €500 million 2% eight-year green notes at 98.713 to yield 2.177%, or 195 basis points over mid-swaps, according to a market source and a regulatory announcement.
The notes (BBB/BBB) had been talked at an eight- or 10-year term. Pricing was tight to guidance in the mid-swaps plus 205 bps area and initial talk in the mid-swaps plus 225 bps area.
The notes are callable for a make-whole premium of Bunds plus 40 bps until Oct. 20, 2029 and then they are callable at par. There is also a change-of-control put.
Citigroup, ING, JPMorgan, Societe Generale and UniCredit are joint bookrunners of the Regulation S senior notes.
The issue priced under the €4 billion guaranteed euro medium-term note program of NE Property BV guaranteed by NEPI Rockcastle.
Proceeds will be used to refinance a portfolio of eligible green projects in line with the group's green finance framework.
Concurrently with the new issue, NE Property offered to repurchase for cash any and all of its outstanding €500 million 2 5/8% notes due May 22, 2023. The existing notes (ISIN: XS1996435928) are guaranteed by NEPI Rockcastle and subject to successful completion of the new issue.
The tender expiration deadline is set for Jan. 17. A holder that has validly tendered, or indicated its firm intention to tender, may receive priority in the allocation of the new notes.
The owner and operator of commercial real estate in Central and Eastern Europe is based in the United Kingdom.
| Issuer: | NE Property BV
|
| Guarantor: | NEPI Rockcastle plc
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| Amount: | €500 million
|
| Issue: | Green notes
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| Maturity: | Jan. 20, 2030
|
| Bookrunners: | Citigroup, ING, JPMorgan, Societe Generale and UniCredit
|
| Coupon: | 2%
|
| Price: | 98.713
|
| Yield: | 2.177%
|
| Spread: | Mid-swaps plus 195 bps
|
| Calls: | Make-whole call at Bunds plus 40 bps followed by a three-month par call
|
| Change-of-control: | Yes
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| Trade date: | Jan. 13
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| Settlement date: | Jan. 20
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| Ratings: | S&P: BBB
|
| Fitch: BBB
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| Distribution: | Regulation S
|
| Price talk: | Guided to mid-swaps plus 205 bps area from initial talk of mid-swaps plus 225 bps area
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