By Andrea Heisinger
New York, Nov. 9 - AMB Property, LP sold an upsized $175 million of 4% seven-year senior notes on Tuesday at a spread of Treasuries plus 225 basis points, a source who worked on the sale said.
The deal size was originally $150 million prior to the launch, the source said. The notes were whispered in the 240 bps to 245 bps range, and the notes priced in line with revised guidance in the 225 bps area.
The notes (Baa1/BBB/BBB) priced at 99.307 to yield 4.111%. They are callable at a make-whole of Treasuries plus 35 bps up to 90 days before maturity, then at par.
Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc. and Bank of America Merrill Lynch were the bookrunners.
Proceeds are being used to reduce borrowings under a $500 million unsecured revolving credit facility. The remainder will be used for general corporate purposes, including the acquisition of properties or portfolios, development or redevelopment, equity investments in co-investment funds, debt repayment, redemption or repurchase of securities, loans to affiliates, or capital expenditures or working capital.
The notes are guaranteed by AMB Property Corp.
The industrial property owner, developer and operator is based in San Francisco.
| Issuer: | AMB Property, LP
|
| Guarantor: | AMB Property Corp.
|
| Issue: | Senior notes
|
| Amount: | $175 million, upsized from $150 million
|
| Maturity: | Jan. 15, 2018
|
| Bookrunners: | Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc., Bank of America Merrill Lynch
|
| Coupon: | 4%
|
| Price: | 99.307
|
| Yield: | 4.111%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps up to 90 days before maturity, then at par
|
| Trade date: | Nov. 9
|
| Settlement date: | Nov. 12
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 240 bps to 245 bps (whispered), 225 bps area (revised)
|
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