Howard Hughes to sell $1.3 billion two-part notes offering on Tuesday

By Paul A. Harris

Portland, Ore., Jan. 19 – Howard Hughes Corp. is driving by with a $1.3 billion two-part offering of senior notes (BB-/BB), according to market sources.

The deal, which was scheduled to be shopped on a late Tuesday morning conference call with investors, features eight-year notes, callable after three years at par plus 50% of the coupon, with initial guidance in the low-to-mid 4% area.

The offering also features 10-year notes, callable after five years at par plus 50% of the coupon, with initial guidance in the mid-to-high 4% area.

The minimum tranche size will be $500 million.

BofA Securities Inc. is the left bookrunner. J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

PNC Capital Markets LLC and U.S. Bancorp Investments Inc. are the co-managers.

The Dallas-based real estate development and management company plans to use proceeds from the Rule 144A and Regulation S for life notes plus cash on hand to tender for and/or redeem its 2025 notes and to repay all or a portion of its bridge loan.

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