By Paul A. Harris
Portland, Ore., June 15 – Apollo Commercial Real Estate Finance, Inc. priced an upsized $500 million issue of eight-year senior secured notes (Ba2/B+) at par to yield 4 5/8% on Tuesday, according to market sources.
The issue size increased from $400 million.
The yield printed at the tight end of yield talk in the 4¾% area. Initial guidance was in the high 4% to 5% area.
The deal was heard to have been driven into the market by $250 million of reverse inquiry.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were 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.
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 issuer primarily originates and invests in senior mortgages, mezzanine loans and other commercial real estate-related debt investments.
| Issuer: | Apollo Commercial Real Estate Finance, Inc.
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| Amount: | $500 million, increased from $400 million
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| Maturity: | June 15, 2029
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| Securities: | Senior secured notes
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | 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
|
| Coupon: | 4 5/8%
|
| Price: | Par
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| Yield: | 4 5/8%
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| Spread: | 392 bps
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| Call protection: | Three years
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| Trade date: | June 15
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| Settlement date: | June 29
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| Ratings: | Moody's: Ba2
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 4¾% area
|
| Marketing: | Roadshow
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