Published on 11/2/2015 in the Prospect News Investment Grade Daily.
New Issue: Mid-America Apartments sells upsized $400 million 4% 10-year notes at 195 bps spread
By Aleesia Forni
Virginia Beach, Nov. 2 – Mid-America Apartments LP sold an upsized $400 million offering of 4% 10-year senior notes at Treasuries plus 195 basis points on Monday, according to an FWP filed with the Securities and Exchange Commission.
The issue (Baa2/BBB/BBB) was upsized from $350 million and priced at 98.99 to yield 4.124%.
Guidance was set in the 200 bps area over Treasuries after having tightened from initial talk set in the Treasuries plus 220 bps area.
J.P. Morgan Securities LLC, Jefferies, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC and Citigroup Global Markets Inc. are the joint bookrunners.
Proceeds will be used to repay borrowings under the company’s secured credit facility, to repay borrowings under its revolving credit facility and for general corporate purposes.
Mid-America Apartments is a Memphis-based real estate investment trust.
| Issuer: | Mid-America Apartments LP
|
| Amount: | $400 million, upsized from $350 million
|
| Description: | Senior notes
|
| Maturity: | Nov. 15, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC, Jefferies, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc.
|
| Co-managers: | KeyBanc Capital Markets Inc., BB&T Capital Markets, BMO Capital Markets Corp., Capital One Securities, Inc., Fifth Third Securities, Inc., Mizuho Securities USA Inc., Regions Securities LLC, SunTrust Robinson Humphrey, Inc.
|
| Coupon: | 4%
|
| Price: | 98.99
|
| Yield: | 4.124%
|
| Spread: | Treasuries plus 195 bps
|
| Trade date: | Nov. 2
|
| Settlement date: | Nov. 9
|
| Price guidance: | Treasuries plus 200 bps area, Treasuries plus 220 bps area
|
| Make-whole call: | Treasuries plus 30 bps prior to Aug. 15, 2025, then callable at par
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
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