Published on 10/7/2021 in the Prospect News Investment Grade Daily.
New Issue: Physicians Realty sells $500 million 2.625% 10-year notes at Treasuries plus 108 bps
Chicago, Oct. 7 – Physicians Realty LP sold $500 million of 2.625% 10-year senior notes (Baa2/BBB/BBB) at 99.789 to yield 2.649%, according to an FWP filed with the Securities and Exchange Commission.
The notes priced with a 108 basis points spread over the 1.25% U.S. Treasury due Aug. 15, 2031.
There is a make-whole optional redemption at Treasuries plus 20 bps until three months before the maturity date.
The notes will be guaranteed by Physicians Realty Trust.
J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc. and PNC Capital Markets LLC are the bookrunners.
Proceeds will be used to repay debt, including credit facility debt and debt on certain properties in the Landmark portfolio. Additionally, proceeds may be used for general corporate purposes, including working capital and investment in real estate.
Milwaukee-based Physicians Realty is a self-managed health care real estate investment trust.
| Issuer: | Physicians Realty LP
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| Guarantor: | Physicians Realty Trust
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| Issue: | Senior notes
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| Amount: | $500 million
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| Maturity: | Nov. 1, 2031
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| Bookrunners: | J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc. and PNC Capital Markets LLC
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| Co-managers: | BofA Securities, Inc., BMO Capital Markets Corp., Capital One Securities, Inc., RBC Capital Markets, LLC, Regions Securities LLC, Morgan Stanley & Co. LLC, Comerica Securities, Inc., Samuel A. Ramirez & Co., Inc., Synovus Securities, Inc., Truist Securities, Inc. and Roberts & Ryan Investments, Inc.
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| Trustee: | U.S. Bank NA
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| Counsel to issuer: | Baker & McKenzie LLP, Venable LLP
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| Counsel to bookrunners: | Jones Day
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| Coupon: | 2.625%
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| Price: | 99.789
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| Yield: | 2.649%
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| Spread: | Treasuries plus 108 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps until Aug. 1, 2031; thereafter at par
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| Trade date: | Oct. 7
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| Settlement date: | Oct. 13
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| Cusip: | 71943UAA2
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