By Paul A. Harris
Portland, Ore., Nov. 17 – Five Point Operating Co., LP priced an upsized $450 million issue of eight-year senior notes (B3/B) at par to yield 7 7/8% in a Friday drive-by, according to a syndicate source.
The issue size was increased from $400 million.
The yield printed in the middle of the 7¾% to 8% yield talk.
Citigroup Global Markets Inc. was the left bookrunner. J.P. Morgan Securities LLC was the joint bookrunner.
The Aliso Viejo, Calif.-based planner and developer of mixed-use, master-planned communities plans to use the proceeds for general corporate purposes, which may include funding development activities at its communities.
| Issuers: | Five Point Operating Co., LP and Five Point Capital Corp.
|
| Amount: | $450 million
|
| Maturity: | Nov. 15, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunner: | J.P. Morgan Securities LLC
|
| Co-manager: | Comerica Securities
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 559 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2020, then callable at 105.813
|
| Equity clawback: | 35% at 107.875 until Nov. 15, 2020
|
| Trade date: | Nov. 17
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¾% to 8%
|
| Price talk: 7 ¾% to 8%
|
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