By Paul A. Harris
St. Louis, May 2 - Co-issuers The Rouse Co. LP and TRC Co-Issuer, Inc. priced a massively upsized $800 million issue of 6¾% seven-year senior notes (Ba1/BB+) at a 175 basis point spread to Treasuries on Tuesday, according to an informed source.
The spread came on top of the price talk.
The notes sold for a dollar price of 99.688 to yield 6.807%.
Lehman Brothers ran the books for the Rule 144A transaction.
Proceeds will be used to repay bank debt.
The issue was upsized from $500 million.
Rouse is a Columbia, Md., real estate investment trust focused on shopping centers and office buildings, as well as mixed-use and industrial properties.
| Issuers: | The Rouse Co. LP/TRC Co-Issuer, Inc.
|
| Amount: | $800 million (increased from $500 million)
|
| Maturity: | May 1, 2013
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| Security description: | Senior notes
|
| Bookrunner: | Lehman Brothers
|
| Coupon: | 6¾%
|
| Price: | 99.688
|
| Yield: | 6.807%
|
| Spread: | 175 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps
|
| Trade date: | May 2
|
| Settlement date: | May 5
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A
|
| Price talk: | Treasuries plus 175 bps area
|
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