Published on 8/12/2020 in the Prospect News Investment Grade Daily.
New Issue: Agree prices $350 million of 2.9% 10-year notes at Treasuries plus 225 bps spread
By Cristal Cody
Tupelo, Miss., Aug. 12 – Agree LP priced an upsized $350 million offering of 2.9% 10-year guaranteed senior notes (Baa2/BBB) on Wednesday at 99.927 to yield 2.908%, or a spread of Treasuries plus 225 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes were talked to price at the Treasuries plus 265 bps area.
The deal was upsized from $300 million.
Bookrunners were Citigroup Global Markets Inc., Wells Fargo Securities LLC and Jefferies LLC.
The notes are guaranteed by general partner Agree Realty Corp. and certain wholly owned subsidiaries.
Proceeds will be used for general corporate purposes, including reducing the amount outstanding on its revolving credit facility.
Agree, based in Bloomfield Hills, Mich., is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants.
| Issuer: | Agree LP
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| Guarantor: | Agree Realty Corp. and certain wholly owned subsidiaries
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| Amount: | $350 million
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| Description: | Senior notes
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| Maturity: | Oct. 1, 2030
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| Bookrunners: | Citigroup Global Markets Inc., Wells Fargo Securities LLC and Jefferies LLC
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| Co-managers: | Capital One Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Raymond James & Associates, Inc., Regions Securities LLC, Stifel, Nicolaus & Co., Inc., Truist Securities, Inc. and U.S. Bancorp Investments, Inc.
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| Coupon: | 2.9%
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| Price: | 99.927
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| Yield: | 2.908%
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| Spread: | Treasuries plus 225 bps
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| Call features: | Make-whole call at Treasuries plus 35 bps before July 1, 2030; thereafter at par
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| Trade date: | Aug. 12
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| Settlement date: | Aug. 17
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 265 bps area
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