Published on 6/18/2020 in the Prospect News Investment Grade Daily.
New Issue: Vereit prices upsized $600 million 3.4% notes due 2028 at 300 bps over Treasuries
By Cristal Cody
Tupelo, Miss., June 18 – Vereit Operating Partnership LP priced an upsized $600 million of 3.4% guaranteed senior notes due Jan. 15, 2028 (Baa3/BBB-/BBB) at a spread of 300 basis points over Treasuries on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price guidance is in the Treasuries plus 350 bps area.
The notes priced at 99.144 to yield 3.53%.
The deal was upsized from $500 million.
Wells Fargo Securities, LLC, Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, U.S. Bancorp Investments, Inc., BMO Capital Markets Corp., Capital One Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Regions Securities LLC and SMBC Nikko Securities America, Inc. were the bookrunners.
The notes are guaranteed by Vereit, Inc.
Proceeds will be used to partially redeem the company’s series F preferred stock and to repay borrowings under its revolving credit facility. In addition, the company may use a portion of the proceeds from the new notes, together with revolver borrowings or cash on hand, to purchase a portion of or repay at maturity its 3.75% convertible notes due 2020.
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
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| Guarantor: | Vereit, Inc.
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| Amount: | $600 million
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| Description: | Senior notes
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| Maturity: | Jan. 15, 2028
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| Bookrunners: | Wells Fargo Securities, LLC, Barclays, BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, U.S. Bancorp Investments, Inc., BMO Capital Markets Corp., Capital One Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Regions Securities LLC and SMBC Nikko Securities America, Inc.
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| Co-managers: | BNY Mellon Capital Markets, LLC, KeyBanc Capital Markets Inc., Comerica Securities, Inc., FHN Financial Securities Corp. and Janney Montgomery Scott LLC
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| Coupon: | 3.4%
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| Price: | 99.144
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| Yield: | 3.53%
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| Spread: | Treasuries plus 300 bps
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| Call features: | Make-whole call at Treasuries plus 45 bps up to but not including Nov. 15, 2027; thereafter at par
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| Trade date: | June 18
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| Settlement date: | June 29
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 350 bps area
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