By Paul A. Harris
St. Louis, Feb. 1 - American Real Estate Partners LP priced a massively upsized $480 million issue of eight-year senior notes (Ba2/BB) at par to yield 7 1/8%, according to market sources.
Price talk was 7% to 7¼%.
Bear Stearns & Co. ran the books for the Rule 144A issue. Jefferies & Co. was the co-manager.
Proceeds will be used for general business purposes including investments and acquisitions.
The issue was upsized from $300 million.
The issuer is a Mount Kisco, N.Y.-based company owned by Carl Icahn that invests in rental real estate, hotels and resorts, housing and condominium development.
| Issuer: | American Real Estate Partners LP
|
| Amount: | $480 million (increased from $300 million)
|
| Maturity: | Feb. 15, 2013
|
| Security description: | Senior notes
|
| Bookrunner: | Bear Stearns & Co.
|
| Co-manager: | Jefferies & Co.
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 310 basis points
|
| Call features: | Callable after Feb. 15, 2009 at 103.563, 101.781, par on and after Feb. 15, 2011
|
| Equity clawback: | Until Feb. 15, 2008 for 35% at 107.125
|
| Trade date: | Feb. 1
|
| Settlement date: | Feb. 13
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Price talk: | 7%-7¼%
|
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