Published on 8/8/2017 in the Prospect News Investment Grade Daily.
New Issue: Vereit prices upsized $600 million 3.95% 10-year notes at 175 bps over Treasuries
By Cristal Cody
Tupelo, Miss., Aug. 8 – Vereit Operating Partnership LP sold an upsized $600 million of 3.95% 10-year guaranteed senior notes (Baa3/BBB-/BBB-) on Tuesday at 99.33 to yield 4.032%, according to an FWP filing with the Securities and Exchange Commission.
The notes priced with a spread of Treasuries plus 175 basis points.
The deal was upsized from an initial $500 million offering.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Barclays, Capital One Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and U.S. Bancorp Investments, Inc. were the bookrunners.
The notes will be guaranteed by Vereit, Inc.
Proceeds will be used to repay borrowings, including swap termination costs and accrued and unpaid interest, under the company’s $500 million term loan facility due June 30, 2018.
Vereit is a Phoenix-based owner and manager of a portfolio of retail, restaurant, office and industrial real estate assets.
| Issuer: | Vereit Operating Partnership LP
|
| Guarantor: | Vereit, Inc.
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| Amount: | $600 million
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| Description: | Senior notes
|
| Maturity: | Aug. 15, 2027
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Barclays, Capital One Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Regions Securities LLC, SMBC Nikko Securities America, Inc., Mizuho Securities USA LLC, KeyBanc Capital Markets Inc., Comerica Securities, Inc. and TD Securities (USA) LLC
|
| Coupon: | 3.95%
|
| Price: | 99.33
|
| Yield: | 4.032%
|
| Spread: | Treasuries plus 175 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps; on or after May 15, 2027 at par
|
| Trade date: | Aug. 8
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| Settlement date: | Aug. 11
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
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| Fitch: BBB-
|
| Distribution: | SEC registered
|
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