Mid-America readies offering of two fixed-rate senior notes tranches; talk at 75 bps, 135 bps area

By Cristal Cody

Chicago, Aug. 5 – Mid-America Apartments, LP expects to price two tranches of fixed-rate senior notes, according to a 424B5 filed with the Securities and Exchange Commission.

The REIT is planning to sell two $300 million tranches, one with a five-year tenor and one with a 30-year maturity timeline.

The five-year notes are talked in the Treasuries plus 75 basis points area, a source noted.

And, the 30-year notes have talk in the Treasuries plus 135 bps area.

The company typically conducts its new-note offerings in the corporate debt market during the first week of August.

The notes will feature a make-whole call and then a par call.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., PNC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are the bookrunners.

U.S. Bank NA is the trustee.

Bass, Berry & Sims plc is counsel for the issuer. Sidley Austin LLP is counsel for the underwriters.

Proceeds will be used to repay upcoming debt maturities. Repayment will include the partial redemption of $250 million of the operating partnership’s 3.375% senior notes due December 2022 and $149 million of its 4.17% senior guaranteed notes due Nov. 30, 2022, 5.57% senior guaranteed notes due July 29, 2023 and 4.33% senior guaranteed notes due Nov. 30, 2024.

Mid-America Apartments is a Germantown, Tenn.-based real estate investment trust.

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