Published on 2/13/2018 in the Prospect News Investment Grade Daily.
New Issue: Ventas Realty sells $650 million 10-year senior notes at Treasuries plus 127 bps
By Cristal Cody
Tupelo, Miss., Feb. 13 – Ventas Realty LP sold $650 million of 4% 10-year senior notes on Tuesday at a spread of 127 basis points over Treasuries, on the tight side of talk, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company priced the notes (Baa1/BBB+/BBB+) at 99.233 to yield 4.094%.
The bookrunners were Jefferies & Co., BofA Merrill Lynch, MUFG and UBS Securities LLC.
Ventas, Inc. is the issue guarantor.
Proceeds will be used with cash on hand and/or borrowings under the company’s revolver to conduct a tender offer to purchase for cash up to $600 million of the company’s 4% senior notes due 2019.
The real estate investment trust for housing and health care properties is based in Chicago.
| Issuer: | Ventas Realty LP
|
| Guarantor: | Ventas, Inc.
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| Amount: | $650 million
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| Description: | Senior notes
|
| Maturity: | March 1, 2028
|
| Bookrunners: | Jefferies & Co., BofA Merrill Lynch, MUFG and UBS Securities LLC
|
| Senior co-managers: | Barclays, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Co-managers: | BB&T Capital Markets, BBVA Securities Inc., BMO Capital Markets Corp., Capital One Securities, Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc.
|
| Junior co-managers: | BNP Paribas Securities Corp., Fifth Third Securities, Inc. and Loop Capital Markets LLC
|
| Coupon: | 4%
|
| Price: | 99.233
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| Yield: | 4.094%
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| Spread: | Treasuries plus 127 bps
|
| Call features: | Make-whole call before Dec. 1, 2027 at price equal to par plus Treasuries plus 20 bps; thereafter at par
|
| Trade date: | Feb. 13
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| Settlement date: | Feb. 23
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| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 130 bps area
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