By Andrea Heisinger
New York, Dec. 6 - Ventas Realty, LP and Ventas Capital Corp. priced an upsized $925 million of senior notes (Baa3/BBB-/BBB) in new and reopened tranches, an informed source said.
The size of the offering was increased from $750 million.
The sale included $700 million of 2% notes due 2018, with pricing at 99.739 to yield 2.053% and a spread of Treasuries plus 145 basis points. The tranche came in tighter than talk in the 160 bps area.
There is a make-whole call at Treasuries plus 25 bps until Jan. 15, 2018, with a par call after that date.
There was a reopening of 3.25% bonds due Aug. 15, 2022 to add $225 million. Pricing was at 98.509 to yield 3.432% with a spread of Treasuries plus 185 bps. These notes priced at the tight end of talk in the 187.5 bps area.
There is a make-whole call at Treasuries plus 30 bps until March 15, 2022, with a par call after that date.
Total issuance of the notes due 2022 is $500 million, including $275 million priced at 188 bps over Treasuries on July 31.
The notes are guaranteed by Ventas, Inc.
Bookrunners were Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC.
Proceeds will be used to repay debt under an unsecured revolving credit facility, for working capital and other for general corporate purposes, including funding future acquisitions or investments, if any.
The real estate investment trust for housing and health care properties is based in Chicago.
| Issuer: | Ventas Realty, LP, Ventas Capital Corp.
|
| Guarantor: | Ventas Inc.
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| Issue: | Senior notes
|
| Amount: | $925 million, upsized from $750 million.
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Senior co-managers: | Credit Agricole Securities (USA) Inc., RBC Capital Markets LLC, TD Securities (USA) LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | BNP Paribas Securities Corp., Mitsubishi UFJ Securities (USA) Inc., RBS Securities Inc., SMBC Nikko Capital Markets Ltd.
|
| Trade date: | Dec. 6
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| Settlement date: | Dec. 13
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
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| Fitch: BBB
|
|
|
| Five-year notes
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| Amount: | $700 million
|
| Maturity: | Feb. 15, 2018
|
| Coupon: | 2%
|
| Price: | 99.739
|
| Yield: | 2.053%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole at Treasuries plus 25 bps to Jan. 15, 2018, par call after
|
| Price talk: | 160 bps area
|
|
|
| 10-year notes
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| Amount: | $225 million, reopened
|
| Maturity: | Aug. 15, 2022
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| Coupon: | 3.25%
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| Price: | 98.509
|
| Yield: | 3.432%
|
| Spread: | Treasuries plus 185 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until May 15, 2022, par call after
|
| Price talk: | 187.5 bps area
|
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