Published on 1/7/2015 in the Prospect News Investment Grade Daily.
New Issue: Ventas Realty prices $900 million senior notes in 10-, 30-year tranches
By Aleesia Forni
Virginia Beach, Jan. 7 – Ventas Realty, LP priced $900 million of senior notes (Baa1/BBB+/BBB+) on Wednesday in 10- and 30-year tranches, according to a market source and a FWP filing with the Securities and Exchange Commission.
There was $600 million of 3.5% notes due 2025 priced at 99.663 to yield 3.54%, or Treasuries plus 160 bps.
A second tranche was $300 million of 4.375% 30-year bonds priced at 99.5 to yield 4.405%.
The notes sold with a spread of Treasuries plus 190 bps.
Both tranches sold at the tight end of price talk.
The bookrunners were BofA Merrill Lynch, J.P. Morgan Securities LLC, RBC Capital Markets LLC and TD Securities.
The notes are guaranteed by Ventas, Inc.
Proceeds will be used to repay debt under its unsecured revolving credit facility and for working capital and other general corporate purposes, including to fund a portion of the cash consideration of the company’s pending acquisition of American Realty Capital Healthcare Trust, Inc. and other future acquisitions and investments.
The real estate investment trust for housing and health care properties is based in Chicago.
| Issuer: | Ventas Realty LP
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| Guarantor: | Ventas Inc.
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| Issue: | Notes
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| Amount: | $900 million
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| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, RBC Capital Markets LLC, TD Securities
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| Senior co-managers: | Barclays, BBVA Securities Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., MUFG, Morgan Stanley & Co. LLC, Jefferies LLC, RBS Securities Inc., UBS Securities LLC, Wells Fargo Securities, LLC
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| Co-managers: | BB&T Capital Markets, Fifth Third Securities, Inc.
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| Trade date: | Jan. 7
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| Settlement date: | Jan. 14
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| Ratings: | Moody’s: Baa1
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| Standard & Poor’s: BBB+
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| Fitch: BBB+
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| Distribution: | SEC-registered
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| 10-year notes
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| Amount: | $600 million
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| Maturity: | Feb. 1, 2025
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| Coupon: | 3.5%
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| Price: | 99.663
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| Yield: | 3.54%
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| Spread: | Treasuries plus 160 bps
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| Price talk: | 165 bps area
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| Make-whole call: | 25 bps prior to Nov. 1, 2024, then callable at par
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| 30-year bonds
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| Amount: | $300 million
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| Maturity: | Feb. 1, 2045
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| Coupon: | 4.375%
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| Price: | 99.5
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| Yield: | 4.405%
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| Spread: | Treasuries plus 190 bps
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| Price talk: | 195 bps area
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| Make-whole call: | 30 bps prior to Aug. 1, 2044, then callable at par
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