By Paul A. Harris
Portland, Ore., Nov. 8 - Rialto Holdings, LLC and Rialto Corp. priced a $250 million issue of five-year senior notes (B2/B/) at par to yield 7% on Friday, according to a syndicate source.
The yield printed at the wide end of the 6¾% to 7% yield talk.
Wells Fargo Securities LLC was the left bookrunner. J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. were the joint bookrunners.
Proceeds will be used to provide working capital to Rialto Mortgage Finance, as well as to repay sums that were advanced by Lennar Corp. to enable Rialto Mortgage to begin originating and securitizing loans, and to make investments in funds or entities managed or advised by Rialto Capital or its subsidiaries.
Rialto Holdings is the parent of Rialto Corp. and Rialto Mortgage Finance.
Miami-based Rialto is a commercial real estate investment, investment management and finance company.
| Issuer: | Rialto Holdings, LLC and Rialto Corp.
|
| Amount: | $250 million
|
| Maturity: | Dec. 1, 2018
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank Securities Inc.
|
| Co-manager: | Goldman Sachs & Co.
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 556 bps
|
| First call: | Dec. 1, 2015 at 103.5
|
| Trade date: | Nov. 8
|
| Settlement date: | Nov. 14
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% to 7%
|
| Marketing: | Roadshow
|
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