By Rebecca Melvin
New York, Sept. 10 – Hospitality Properties Trust sold $1.7 billion of fixed-rate senior notes in three tranches (expected ratings: Baa3/BBB-) on Tuesday, according to a 424B5 filed with the Securities and Exchange Commission.
The $825 million of 4.35% notes due 2024 priced at 99.882 to yield 4.376%, or a spread over Treasuries of 280 basis points.
The $450 million of 4.75% notes due 2026 priced at 99.844 to yield 4.776%, with a spread over Treasures of 312.5 bps.
The $425 million tranche of 4.95% notes due 2029 priced at 98.954 to yield 5.084%, or a spread of 337.5 bps over Treasuries.
BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC. are the bookrunners.
Proceeds will be used to help fund a real estate portfolio purchase from Spirit MTA REIT. The trust may also use proceeds to repay future amounts under an existing credit facility or for general business purposes.
The real estate investment trust is based in Newton, Mass.
| Issuer: | Hospitality Properties Trust
|
| Amount: | $1.7 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC
|
| Pricing date: | Sept. 10
|
| Settlement date: | Sept. 18
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
|
|
| 2024 notes
|
| Amount: | $825 million
|
| Maturity: | Oct. 1, 2024
|
| Coupon: | 4.35%
|
| Price: | 99.882
|
| Yield: | 4.376%
|
| Spread: | Treasuries plus 280 bps
|
| Call features: | Make-whole call at Treasuries plus 45 bps before Sept. 1, 2024
|
|
|
| 2026 notes
|
| Amount: | $450 million
|
| Maturity: | Oct. 1, 2026
|
| Coupon: | 4.75%
|
| Price: | 99.844
|
| Yield: | 4.776%
|
| Spread: | Treasuries plus 312.5 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps before Aug. 1, 2026
|
|
|
| 2029 notes
|
| Amount: | $425 million
|
| Maturity: | Oct. 1, 2029
|
| Coupon: | 4.95%
|
| Price: | 98.954
|
| Yield: | 5.084%
|
| Spread: | Treasuries plus 337.5 bps
|
| Call features: | Make-whole call at Treasuries plus 60 bps before July 1, 2029
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
