Published on 8/6/2018 in the Prospect News Investment Grade Daily.
New Issue: Ventas prices $750 million 4.4% notes due 2029 at Treasuries plus 147 bps spread
By Cristal Cody
Tupelo, Miss., Aug. 6 – Ventas Realty LP sold $750 million of 4.4% senior notes due Jan. 15, 2029 (Baa1/BBB+/BBB+) on Monday at a spread of Treasuries plus 147 basis points, on the tight side of talk in the Treasuries plus 150 bps area, plus or minus 3 bps, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company priced the notes at 99.954 to yield 4.406%.
Wells Fargo Securities LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and TD Securities (USA) LLC were the bookrunners.
Ventas, Inc. guarantees the notes.
Proceeds will be used to purchase for cash up to $700 million of the company’s 4.75% senior notes due 2021 in a tender offer, for working capital and for other general corporate purposes, including debt repayment.
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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| Amount: | $750 million
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| Description: | Senior notes
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| Maturity: | Jan. 15, 2029
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| Bookrunners: | Wells Fargo Securities LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and TD Securities (USA) LLC
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| Senior co-managers: | BMO Capital Markets Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, MUFG and RBC Capital Markets, LLC
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| Co-managers: | Barclays, BB&T Capital Markets, BBVA Securities Inc., Capital One Securities, | Inc., BofA Merrill Lynch, PNC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, | Inc. and UBS Securities LLC
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| Junior co-managers: | BNP Paribas Securities Corp., Fifth Third Securities, | Inc., BNY Mellon Capital Markets, LLC and Loop Capital Markets LLC
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| Coupon: | 4.4%
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| Price: | 99.954
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| Yield: | 4.406%
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| Spread: | Treasuries plus 147 bps
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| Call features: | Make-whole call before Oct. 15, 2028 at price equal to par plus Treasuries plus 25 bps; thereafter at par
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| Trade date: | Aug. 6
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| Settlement date: | Aug. 15
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 150 bps area, plus or minus 3 bps; initial price talk at Treasuries plus 165 bps-170 bps area
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