By Paul A. Harris
Portland, Ore., May 28 – Diversified Healthcare Trust priced an upsized $1 billion issue of five-year senior notes (Ba1/BB+) at par to yield 9¾% in a Thursday drive-by, according to market sources.
Wells Fargo Securities LLC was the left bookrunner. Joint bookrunners were Citigroup Global Markets Inc., PNC Capital Markets LLC and RBC Capital Markets LLC.
Joint lead managers were BofA Securities Inc., BMO Capital Markets Corp., Mizuho Securities USA Inc., Regions Securities LLC and SMBC Nikko Securities America Inc.
The issue size increased from $500 million.
The yield printed at the wide end of the 9½% to 9¾% yield talk.
The deal was heard to be playing to $2 billion of orders at 3:40 p.m. ET on Thursday, a trader said.
The Newton, Mass.-based real estate investment trust, which is focused on health care properties, plans to use the proceeds for general corporate purposes, which may include repaying its 2020 term loan as well as repaying debt under its revolving credit facility.
| Issuer: | Diversified Healthcare Trust
|
| Amount: | $1 billion, increased from $500 million
|
| Maturity: | June 15, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | Citigroup Global Markets Inc., PNC Capital Markets LLC and RBC Capital Markets LLC
|
| Joint lead managers: | BofA Securities Inc., BMO Capital Markets Corp., Mizuho Securities USA Inc., Regions Securities LLC and SMBC Nikko Securities America Inc.
|
| Co-managers: | Samuel A. Ramirez & Co. Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc. and UBS Securities LLC
|
| Coupon: | 9¾%
|
| Price: | Par
|
| Yield: | 9¾%
|
| Spread: | 942 bps
|
| First call: | June 15, 2025 at 104.875
|
| Trade date: | May 28
|
| Settlement date: | June 2
|
| Ratings: | Moody's: Ba1
|
| S&P: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 9½% to 9¾%
|
| Marketing: | Drive-by
|
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