Apollo Commercial Real Estate to price $400 million notes on Tuesday; whisper high 4%-5% area

By Paul A. Harris

Portland, Ore., June 14 – Apollo Commercial Real Estate Finance, Inc. plans to price a $400 million offering of eight-year senior secured notes (existing ratings Ba2/B+) on Tuesday, according to market sources.

The deal, which was set to kick off on a Monday conference call with investors, is in the market with initial guidance in the high-4% to 5% area, driven into the market on $250 million of reverse inquiry, a trader said.

Goldman Sachs & Co. LLC is the left bookrunner. Apollo Global Securities LLC, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon.

The New York-based real estate investment trust plans to use the proceeds for general corporate purposes, including the temporary reduction of debt under its current repurchase agreements.

The prospective issuer primarily originates and invests in senior mortgages, mezzanine loans and other commercial real estate-related debt investments.

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