By Paul A. Harris
Portland, Ore., Jan. 19 – Howard Hughes Corp. priced $1.3 billion of senior notes (Ba3/BB-/BB) in two tranches on Tuesday, according to market sources.
The drive-by deal included $650 million of eight-year notes that priced at par to yield 4 1/8%. The yield printed at the tight end of yield talk in the 4¼% area. Initial guidance was in the low-to-mid 4% area.
The deal also included $650 million of 10-year notes, which priced at par to yield 4 3/8%. The yield printed at the tight end of yield talk in the 4½% area. Initial guidance was in the mid-to-high 4% area.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
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.
| Issuer: | Howard Hughes Corp.
|
| Amount: | $1.3 billion
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | PNC Capital Markets LLC and U.S. Bancorp Investments Inc.
|
| Trade date: | Jan. 19
|
| Settlement date: | Feb. 2
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Drive-by
|
|
|
| Eight-year notes
|
| Amount: | $650 million
|
| Maturity: | Feb. 1, 2029
|
| Coupon: | 4 1/8%
|
| Price: | Par
|
| Yield: | 4 1/8%
|
| Call protection: | Three years
|
| Price talk: | 4¼% area
|
|
|
| 10-year notes
|
| Amount: | $650 million
|
| Maturity: | Feb. 1, 2031
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Call protection: | Five years
|
| Price talk: | 4½% area
|
|
|
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