New Issue: Physicians Realty prices $400 million 4.3% 10-year notes at 185 bps over Treasuries

By Cristal Cody

Tupelo, Miss., March 2 – Physicians Realty LP sold $400 million of 4.3% 10-year guaranteed senior notes at 99.677 to yield 4.34% on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes (Baa3/BBB-) priced with a spread of Treasuries plus 185 basis points, on the tight side of guidance.

The bookrunners were J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc. and Jefferies LLC.

The notes are guaranteed by Physicians Realty Trust.

Proceeds will be used to repay some of the outstanding debt under the company’s revolving credit facility and for general corporate purposes.

Milwaukee-based Physicians Realty is a self-managed health care real estate investment trust.

Issuer:	Physicians Realty LP
Guarantor:	Physicians Realty Trust
Amount:	$400 million
Description:	Senior notes
Maturity:	March 15, 2027
Bookrunners:	J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc. and Jefferies LLC
Co-managers:	BMO Capital Markets Corp., BofA Merrill Lynch, KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, Samuel A. Ramirez & Co., Inc. and Stifel, Nicolaus & Co., Inc.
Coupon:	4.3%
Price:	99.677
Yield:	4.34%
Spread:	Treasuries plus 185 bps
Call feature:	Before Dec. 15, 2026 at greater of par and Treasuries plus 30 bps; thereafter at par
Trade date:	March 2
Settlement date:	March 7
Ratings:	Moody’s: Baa3
	S&P: BBB-
Distribution:	SEC registered
Price guidance:	Treasuries plus 190 bps area, plus or minus 5 bps

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