By Paul Deckelman
New York, March 22 - Aviv REIT, Inc. came to market on Tuesday with an opportunistically timed and rapidly marketed $100 million add-on (expected B1/B+) to its existing 7¾% senior notes due 2019, which the Chicago-based health care facilities owner had sold in January.
The deal priced several hours after its initial announcement and was upsized from the initially planned $75 million. The notes priced at 102.75, at the tight end of price talk envisioning a range between 102.5 and 102.75.
The yield to maturity was 7.163%.
The Rule 144A/Regulation S transaction came to market via joint bookrunning managers Merrill Lynch, Morgan Stanley & Co. Inc. and RBC Capital Markets LLC.
Citigroup Global Markets Inc. and Stifel, Nicolaus & Co. Inc. were the co-managers on the deal.
The bonds will carry four years of call protection and will be considered part of the same series as the $200 million of 7¾% bonds sold at par in January. The notes were formally issued by Aviv subsidiaries Aviv Healthcare Properties LP and Aviv Healthcare Capital Corp.
The company plans to use $36 million of the deal proceeds to repay a portion of its secured debt, with the balance of about $64 million to be used to fund the debt component of $110 million of pending investments.
| Issuers: | Aviv REIT, Inc. via subsidiaries Aviv Healthcare Properties LP and Aviv Healthcare Capital Corp.
|
| Amount: | $100 million, upsized from $75 million
|
| Maturity | Feb. 15, 2019
|
| Securities: | Add-on senior notes
|
| Bookrunners: | Merrill Lynch, Morgan Stanley & Co. Inc. and RBC Capital Markets LLC.
|
| Co-managers: | Citigroup Global Markets Inc. and Stifel, Nicolaus & Co. Inc.
|
| Coupon: | 7¾%
|
| Price: | 102.75
|
| Yield: | 7.163%
|
| Spread: | 442 bps over 2¾% UST due Feb. 15, 2019
|
| Call features: | Make-whole call at T+50 bps until Feb. 15, 2015, then callable at a premium
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| Equity clawback: | For up to 35% of the issue at 107.75 until Feb. 15, 2014
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| Change of Control: | Put at 101% of principal plus accrued interest
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| Trade date: | March 22
|
| Settlement date: | April 5 (T+10)
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| Expected : | Moody's: B1
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| Standard & Poor's: B+
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| Distribution: | Rule 144A/Regulation S
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| Price talk: | 102.5-102.75
|
| Marketing: | Quick-to-market
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