By Paul A. Harris
Portland, Ore., Sept. 9 – Quicken Loans LLC and Quicken Loans Co-Issuer, Inc. priced an upsized $2 billion amount of senior notes (Ba1/BB) in two tranches on Wednesday, according to a market source and an 8-K filing with the Securities and Exchange Commission.
The deal includes a $750 million tranche of 8.5-year notes that priced at par to yield 3 5/8%, tight to yield talk in the 3¾% area.
It also includes a $1.25 billion tranche of 10.5-year notes that priced at par to yield 3 7/8%, tight to yield talk in the 4% area.
The deal was upsized from $1.25 billion, and about half that amount was taken in reverse inquiry, a trader said.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets Corp. and UBS Securities LLC were the bookrunners.
The issuers are subsidiaries of Detroit-based financial services provider Rocket Cos., Inc.
Proceeds will be used to redeem the $1.25 billion outstanding of the 5¾% senior notes due 2025 and for general corporate purposes.
| Issuer: | Quicken Loans LLC and Quicken Loans Co-Issuer, Inc.
|
| Amount: | $2 billion, increased from $1.25 billion
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets Corp. and UBS Securities LLC
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 14
|
| Ratings: | Moody's: Ba1
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Drive-by
|
|
|
| 8.5-year notes
|
| Amount: | $750 million
|
| Maturity: | March 1, 2029
|
| Coupon: | 3 5/8%
|
| Price: | Par
|
| Yield: | 3 5/8%
|
| Spread: | 295 bps
|
| Call protection: | 3.5 years
|
| Price talk: | 3¾% area
|
|
|
| 10.5-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 1, 2031
|
| Coupon: | 3 7/8%
|
| Price: | Par
|
| Yield: | 3 7/8%
|
| Spread: | 305 bps
|
| Call protection: | 5.5 years
|
| Price talk: | 4% area
|
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