By Cristal Cody
Tupelo, Miss., Oct. 2 – American Campus Communities Operating Partnership LP sold $400 million of 3.625% 10-year guaranteed senior notes (Baa2/BBB) on Monday at 99.912 to yield 3.635%, or a spread of Treasuries plus 130 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced on the tight side of guidance in the Treasuries plus 135 bps area.
The bookrunners were Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BBVA Securities Inc. and BofA Merrill Lynch.
The notes are guaranteed by American Campus Communities Inc.
Proceeds will be used to repay the outstanding balance of the company’s revolving credit facility, to acquire seven student housing properties for $590.6 million, for other projects and other potential acquisitions of student housing properties and for general business purposes.
The real estate investment trust for student housing is based in Austin, Texas.
| Issuer: | American Campus Communities Operating Partnership LP
|
| Guarantor: | American Campus Communities Inc.
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Nov. 15, 2027
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BBVA Securities Inc. and BofA Merrill Lynch
|
| Co-managers: | Capital One Securities, Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC, Regions Securities LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.625%
|
| Price: | 99.912
|
| Yield: | 3.635%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call at greater of par or Treasuries plus 20 bps before Aug. 15, 2027; thereafter at par
|
| Trade date: | Oct. 2
|
| Settlement date: | Oct. 10
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 135 bps area
|
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