Published on 11/9/2020 in the Prospect News Investment Grade Daily.
New Issue: Vereit prices $1.2 billion of guaranteed senior notes in two parts
By Cristal Cody
Tupelo, Miss., Nov. 9 – Vereit Operating Partnership LP priced $1.2 billion of guaranteed senior notes (Baa3/BBB-/BBB) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
A $500 million offering of 2.2% notes due June 15, 2028 priced at 98.881 to yield 2.362%, or a spread of 165 basis points over Treasuries.
Vereit sold $700 million of 2.85% notes due Dec. 15, 2032 at 98.928 to yield 2.956%, or Treasuries plus 200 bps.
Wells Fargo Securities, LLC, Barclays, BMO Capital Markets Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., Capital One Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA 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, along with borrowings under the company’s revolving credit facility or cash on hand, to repay amounts outstanding under its term loan and to settle swap agreements.
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: | $1.2 billion
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| Description: | Senior notes
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| Bookrunners: | Wells Fargo Securities, LLC, Barclays, BMO Capital Markets Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., Capital One Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA 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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| Trade date: | Nov. 9
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| Settlement date: | Nov. 17
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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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| Notes due 2028
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| Amount: | $500 million
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| Maturity: | June 15, 2028
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| Coupon: | 2.2%
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| Price: | 98.881
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| Yield: | 2.362%
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| Spread: | Treasuries plus 165 bps
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| Call features: | Make-whole call at Treasuries plus 25 bps up to but not including April 15, 2028; thereafter at par
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| Notes due 2032
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| Amount: | $700 million
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| Maturity: | Dec. 15, 2032
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| Coupon: | 2.85%
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| Price: | 98.928
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| Yield: | 2.956%
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| Spread: | Treasuries plus 200 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps up to but not including Sept. 15, 2032; thereafter at par
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