Easterly Government Properties, Founders Advantage, others tap private placement market

Kansas City, Kan., May 31 – Private placement activity picked up on Wednesday with issuance reported from Easterly Government Properties, Inc., Founders Advantage Capital Corp., Citizens Community Bancorp, Inc. and Marquee Energy Ltd.

Meanwhile, London-based real estate investment trust Segro plc announced plans to tap the market.

In its deal, Easterly Government Properties completed a $175 million private placement of notes in three tranches, according to a news release.

The company, through its Easterly Government Properties, LP operating partnership, sold $95 million of 4.05% series A senior notes due 2027, $50 million of 4.15% series B senior notes due 2029 and $30 million of 4.3% series C senior notes due 2032.

Combined the debt has a weighted average maturity of 11.4 years and a weighted average interest rate of 4.12%.

Citigroup was the placement agent.

Easterly is a Washington, D.C.-based real estate investment trust focused on class A commercial properties leased to U.S. government agencies.

Separately, Founders Advantage Capital entered into a $75 million five-year senior secured credit facility with Sagard Holdings ULC.

Interest on the loans will be Libor plus 700 basis points with a 1% Libor floor, payable quarterly.

The facility will be secured by a first priority lien on all present and after-acquired assets of the company, according to a company announcement.

Proceeds will be used to repay debt, to close acquisitions and for general corporate purposes.

The initial draw at closing is $42 million.

Founders is an investment issuer based in Calgary, Alta.

In other financings, Citizens Community Bancorp placed $15 million of 6.75% fixed-to-floating rate subordinated notes due 2027 with EJF Debt Opportunities Master Fund, LP, according to an 8-K filing with the Securities and Exchange Commission.

Interest is fixed at 6.75% for the first five years and then floats at Libor plus 490 bps.

The notes will be callable after five years.

Citizens is an Eau Claire, Wis., full-service bank.

And Marquee Energy completed a C$30 million special situations term loan with a 10% interest rate and a five-year maturity, according to a news release.

Marquee also issued warrants for 37.5 million common shares exercisable at C$0.11 per share.

The lender was Crown Capital Fund IV, LP, a fund managed by Crown Capital Partners Inc.

Marquee is a Calgary, Alta.-based oil and gas company focused on western Canada.

Still on tap, Segro said it is planning to issue notes in a private placement to institutional investors in the United States as part of a refinancing, according to announcements from the company.

The company said it is in “advanced discussions” with a “number” of investors for the note issue.

Proceeds will be used to fund the redemption of the company’s £200 million of 5.5% notes due 2018, which was announced on Wednesday.

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