Published on 9/8/2014 in the Prospect News Investment Grade Daily.
New Issue: Brandywine prices $500 million of guaranteed notes due 2024, 2029
By Aleesia Forni
Virginia Beach, Sept. 8 – Brandywine Operating Partnership, LP priced $500 million of guaranteed notes (Baa3/BBB-/) in tranches due 2024 and 2029 on Monday, according to a market source and a FWP filed with the Securities and Exchange Commission.
There was $250 million of 4.1% 10-year notes priced at 99.388 to yield 4.175%, or Treasuries plus 170 basis points.
A $250 million tranche of 4.55% notes due 2029 priced at 99.191 to yield 4.625%, or Treasuries plus 215 bps.
Both tranches sold in line with talk, which was unchanged from initial guidance.
Bookrunners were Wells Fargo Securities LLC, Barclays, Jefferies & Co. and RBC Capital Markets LLC.
Proceeds will be used to fund a tender offer and to repay borrowings under the company’s three-year unsecured term loan due 2015 and four-year unsecured term loan due 2016.
The notes are guaranteed by Brandywine Realty Trust.
The real estate investment trust for office and industrial properties is based in Radnor, Pa.
| Issuer: | Brandywine Operating Partnership LP
|
| Guarantor: | Brandywine Realty Trust
|
| Issue: | Notes
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| Amount: | $500 million
|
| Joint bookrunners: | Wells Fargo Securities LLC, Barclays, Jefferies & Co., RBC Capital Markets LLC
|
| Senior co-managers: | BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., Citigroup Global Markets, Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch
|
| Junior co-managers: | BB&T Capital Markets, BBVA Securities Inc., BMO Capital Markets Corp., Comerica Securities, Inc., Goldman Sachs & Co., the Huntington Investment Co., Janney Montgomery Scott LLC, MUFG, Regions Securities LLC, Santander Investment Securities Inc., TD Securities (USA) LLC, U.S. Bancorp Investment, Inc.
|
| Trade date: | Sept. 8
|
| Settlement date: | Sept. 16
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | Oct. 1, 2024
|
| Coupon: | 4.1%
|
| Price: | 99.388
|
| Yield: | 4.175%
|
| Spread: | Treasuries plus 170 bps
|
| Price talk: | Treasuries plus 170 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to July 1, 2024, then callable at par
|
|
|
| 15-year notes
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| Amount: | $250 million
|
| Maturity: | Oct. 1, 2029
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| Coupon: | 4.55%
|
| Price: | 99.191
|
| Yield: | 4.625%
|
| Spread: | Treasuries plus 215 bps
|
| Price talk: | Treasuries plus 215 bps area
|
| Make-whole call: | Treasuries plus 35 bps prior to July 1, 2029, then callable at par
|
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