By Paul A. Harris
Portland, Ore., Jan. 7 – Adler Real Estate AG priced €1.5 billion of senior notes (BB+) in two tranches on Thursday, according to market sources.
A €700 million tranche of 1 7/8% five-year notes priced at 98.826 to yield 2 1/8%. The yield printed 12.5 basis points inside of yield talk in the 2 3/8% area. Initial talk was 2 5/8% to 2¾%.
An €800 million tranche of 2¼% eight-year notes priced at 98.207 to yield 2½%, 12.5 bps inside of yield talk in the 2¾% area. Initial talk was 3% to 3 1/8%.
The deal was heard to be playing to €4.9 billion of demand across both tranches, a source said.
Final book sizes were €1.8 billion for the five-year notes and €2.1 billion for the eight-year notes, a source said.
JPMorgan was the global coordinator and is a joint bookrunner along with Barclays and Deutsche Bank.
The Hamburg, Germany-based real estate group plans to use proceeds to refinance debt, including funding its any-and-all tender offer for the existing €500 million 1½% notes due December 2021. The tender offer expires on Jan. 12.
| Issuer: | Adler Group SA
|
| Amount: | €1.5 billion
|
| Securities: | Senior notes
|
| Global coordinator: | JPMorgan
|
| Joint bookrunners: | JPMorgan, Barclays and Deutsche Bank
|
| Trade date: | Jan. 7
|
| Settlement date: | Jan. 14
|
| Rating: | S&P: BB+
|
| Distribution: | Regulation S
|
|
|
| Five-year notes
|
| Amount: | €700 million
|
| Maturity: | Jan. 14, 2026
|
| Coupon: | 1 7/8%
|
| Price: | 98.826
|
| Yield: | 2 1/8%
|
| Spread: | 257.9 bps
|
| Call protection: | Make-whole call at Bunds plus 45 bps until three months prior to maturity, then callable at par, otherwise non-callable
|
| Price talk: | 2 3/8% area
|
|
|
| Eight-year notes
|
| Amount: | €800 million
|
| Maturity: | Jan. 14, 2029
|
| Coupon: | 2¼%
|
| Price: | 98.207
|
| Yield: | 2½%
|
| Spread: | 282.8 bps
|
| Call protection: | Make-whole call at Bunds plus 50 bps until three months prior to maturity, then callable at par, otherwise non-callable
|
| Price talk: | 2¾% area
|
|
|
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