By Andrea Heisinger
New York, April 12 - Ventas Realty, LP and Ventas Capital Corp. sold $600 million of 4% seven-year senior notes on Thursday to yield 265 basis points over Treasuries, a market source said.
The paper was priced at the tight end of guidance in the 270 bps area, the source said.
The notes (Baa2/BBB/BBB+) were sold at 99.489 to yield 4.084%.
There is a make-whole call at Treasuries plus 40 bps until Jan. 30, 2019 and a par call after that date.
Bank of America Merrill Lynch, Credit Agricole Securities (USA) Inc. and UBS Securities Inc. were the bookrunners.
Senior co-managers were J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC.
Co-managers were Barclays Capital Inc., Fifth Third Securities, Goldman Sachs & Co., Huntington Investment Co., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, RBS Securities Inc. and SMBC Nikko Capital Markets Ltd.
Proceeds will be used to repay debt under an unsecured revolving credit facility, for working capital, and other general corporate purposes, including funding future acquisitions or investments.
The notes are guaranteed by Ventas Inc.
The real estate investment trust for senior housing and health care properties is based in Chicago.
| Issuers: | Ventas Realty, LP, Ventas Capital Corp.
|
| Guarantor: | Ventas, Inc.
|
| Issue: | Senior notes
|
| Amount: | $600 million
|
| Maturity: | April 30, 2019
|
| Bookrunners: | Bank of America Merrill Lynch, Credit Agricole Securities (USA) Inc., UBS Securities Inc.
|
| Senior co-managers: | J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., TD Securities (USA) LLC, Wells Fargo Securities LLC
|
| Co-managers: | Barclays Capital Inc., Fifth Third Securities, Goldman Sachs & Co., Huntington Investment Co., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, RBS Securities Inc., SMBC Nikko Capital Markets Ltd.
|
| Coupon: | 4%
|
| Price: | 99.489
|
| Yield: | 4.084%
|
| Spread: | Treasuries plus 265 bps
|
| Call: | Make-whole at Treasuries plus 40 bps until Jan. 30, 2019, par call after
|
| Trade date: | April 12
|
| Settlement date: | April 17
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
| Price talk: | 270 bps area
|
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