Published on 2/19/2019 in the Prospect News Investment Grade Daily.
New Issue: Ventas Realty prices $700 million of senior notes in two tranches
By Cristal Cody
Tupelo, Miss., Feb. 19 – Ventas Realty LP sold $700 million two-part offering of senior notes (Baa1/BBB+/BBB+) on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company priced $400 million of 3.5% five-year notes at 99.878 to yield 3.525%, or a spread of 105 basis points over Treasuries. The notes priced on the tight side of guidance in the 110 bps spread area, plus or minus 5 bps.
The $300 million tranche of 4.875% 30-year notes came on top of guidance at a Treasuries plus 190 bps spread, or 99.77 to yield 4.889%.
Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC were the bookrunners.
Ventas, Inc. is the guarantor.
Proceeds will be used for working capital and other general corporate purposes, which may include debt repayment.
The real estate investment trust for housing and health care properties is based in Chicago.
| Issuer: | Ventas Realty LP
|
| Guarantor: | Ventas, Inc.
|
| Amount: | $700 million
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC
|
| Senior co-managers: | BBVA Securities Inc., BMO Capital Markets Corp., J.P. Morgan Securities LLC, MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc.
|
| Co-managers: | BB&T Capital Markets, Capital One Securities, Inc., Credit Agricole Securities (USA) Inc., BofA Merrill Lynch, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, TD Securities (USA) LLC, UBS Securities LLC and Wells Fargo Securities, LLC
|
| Junior co-managers: | BNP Paribas Securities Corp., Fifth Third Securities, Inc., BNY Mellon Capital Markets, LLC and Loop Capital Markets LLC
|
| Trade date: | Feb. 19
|
| Settlement date: | Feb. 26
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | April 15, 2024
|
| Coupon: | 3.5%
|
| Price: | 99.878
|
| Yield: | 3.525%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call before March 15, 2024 at price equal to par and Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 110 bps area, plus or minus 5 bps; initial talk at 130 bps spread area
|
|
|
| 30-year notes
|
| Amount: | $300 million
|
| Maturity: | April 15, 2049
|
| Coupon: | 4.875%
|
| Price: | 99.77
|
| Yield: | 4.889%
|
| Spread: | Treasuries plus 190 bps
|
| Call features: | Make-whole call before Oct. 15, 2048 at price equal to par and Treasuries plus 30 bps; thereafter at par
|
| Price guidance: | Treasuries plus 190 bps; initial talk at 205 bps spread area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
