By Lisa Kerner
Charlotte, N.C., June 5 – Weyerhaeuser Real Estate Co. priced an upsized $900 million offering of senior notes (B1/BB-) in two tranches, according to an 8-K filing with the Securities and Exchange Commission.
The company sold $450 million of 4 3/8%% senior notes due 2019 and $450 million of 5 7/8% senior notes due 2024.
Citigroup Global Markets was left bookrunner and Deutsche Bank Securities Inc. was joint bookrunner for the Rule 144A with registration rights offering.
The deal has been expected to be $800 million of non-callable senior notes in tranches of five-year notes with initial guidance in the high 4% yield context and 10-year notes with initial yield guidance at 6%.
Weyerhaeuser is issuing the notes in connection with its proposed combination with TRI Pointe Homes, Inc.
Upon release of the proceeds from escrow, Weyerhaeuser will use the net proceeds to pay roughly $739 million in cash to a Weyerhaeuser Co. subsidiary. In addition, the company will pay a cash amount equal to all unpaid interest on certain intercompany debt.
If the proposed combination of the two companies is not consummated on or prior to Nov. 4, the notes will be subject to a special mandatory redemption, the filing stated.
As previously reported, Tri Pointe agreed to acquire Weyerhaeuser Real Estate from Weyerhaeuser Co. in a $2.7 billion deal expected to close in the second quarter.
Weyerhaeuser Real Estate is the homebuilding subsidiary of Federal Way, Wash.-based Weyerhaeuser.
Tri Pointe is a homebuilder based in Irvine, Calif.
| Issuer: | Weyerhaeuser Real Estate Co.
|
| Issue: | Senior notes
|
| Amount: | $900 million
|
| Bookrunners: | Citigroup Global Markets (left books), Deutsche Bank Securities Inc. (joint books)
|
| Lead manager: | US Bancorp
|
| Co-managers: | JMP Securities, Zelman Partners LLC
|
| Ratings: | Moody’s: B1
|
| Standard & Poor’s: BB-
|
| Pricing date: | June 4
|
| Settlement: | June 13
|
| Distribution: | Rule 144A with registration rights, Regulation S
|
|
|
| Five-year notes
|
| Amount: | $450 million
|
| Coupon: | 4.375%
|
| Maturity: | 2019
|
|
|
| Ten-year notes
|
| Amount: | $450 million
|
| Coupon: | 5.875%
|
| Maturity: | 2024
|
|
|
|
|
© 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.
