By Marisa Wong
Los Angeles, Sept. 14 – Retail Opportunity Investments Partnership LP priced $350 million of 6.75% notes due Oct. 15, 2028 (expected: Baa2/BBB-/BBB) guaranteed by Retail Opportunity Investments Corp., according to an FWP filing with the Securities and Exchange Commission.
The notes priced on Thursday at 99.511 to yield 6.864%, or at Treasuries plus 245 basis points.
There is a make-whole call option until one month prior to maturity, and then the notes will be callable at par.
J.P. Morgan Securities LLC, BofA Securities, Inc., PNC Capital Markets LLC, Wells Fargo Securities, LLC, KeyBanc Capital Markets Inc. and U.S. Bancorp Investments, Inc. are the joint bookrunners.
According to a 424B5 filing with the SEC, the operating partnership intends to use the net proceeds to repay debt, which may include the company’s 5% senior notes due 2023, of which $250 million is outstanding as of June 30, and borrowings under its $300 million unsecured term loan and $600 million unsecured revolving credit facility, of which $63 million is outstanding as of June 30; and for general corporate purposes.
San Diego-based Retail Opportunity is a self-managed real estate investment trust focusing on the acquisition, ownership and management of necessity-based community and neighborhood shopping centers that are anchored by national or regional supermarkets and drugstores.
| Issuer: | Retail Opportunity Investments Partnership LP
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| Guarantor: | Retail Opportunity Investments Corp.
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| Amount: | $350 million
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| Issue: | Notes
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| Maturity: | Oct. 15, 2028
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities, Inc., PNC Capital Markets LLC, Wells Fargo Securities, LLC, KeyBanc Capital Markets Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | M&T Securities, Inc. and Regions Securities LLC
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| Trustee: | Computershare Trust Co., NA
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| Counsel to issuer: | Clifford Chance US LLP and Venable LLP (Maryland law)
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| Counsel to underwriters: | Sidley Austin LLP
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| Coupon: | 6.75%
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| Price: | 99.511
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| Yield: | 6.864%
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| Spread: | Treasuries plus 245 bps
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| Call option: | Make-whole call at Treasuries plus 40 bps prior to Sept. 15, 2028; after that, par call
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| Pricing date: | Sept. 14
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| Settlement date: | Sept. 21
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| Expected 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: | 76132FAC1
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