Published on 3/31/2022 in the Prospect News Investment Grade Daily.
New Issue: American Homes 4 Rent prices $900 million of senior notes in two parts
Chicago, March 31 – American Homes 4 Rent LP priced $900 million of senior notes (Baa3/BBB-) in two parts on Thursday, according to an FWP filing with the Securities and Exchange Commission and a 424B5 filing earlier in the day.
The deal includes $600 million of 3.625% 10-year notes, which priced at 97.517 to yield 3.927%. The spread came at 160 basis points over Treasuries.
A smaller $300 million 30-year tranche priced with a 4.3% coupon, discounted to 97.237 to yield 4.468%. The spread priced out as 200 bps over the benchmark Treasury.
Both notes may be optionally redeemed early with make-whole premiums (Treasuries plus 25 bps for the 10-year notes and Treasuries plus 30 bps for the 30-year notes) until their par call dates, a number of months before their respective maturity dates (three months for the 10-year notes and six months for the 30-year notes).
BofA Securities, Inc., J.P. Morgan Securities LLC and PNC Capital Markets LLC are joint bookrunners along with Wells Fargo Securities, LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Raymond James & Associates, Inc.
Proceeds will be used to pay down the company’s revolving credit facility, and any remaining proceeds will be used for general corporate purposes.
General corporate purposes may include property acquisitions and developments, the expansion, redevelopment and/or improvement of existing properties in the company’s portfolio, other capital expenditures, the redemption of series F preferred shares, the redemption of other preferred shares, the repayment of outstanding debt, working capital and other general purposes.
American Homes is a Calabasas, Calif.-based real estate investment trust.
| Issuer: | American Homes 4 Rent LP
|
| Amount: | $900 million
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, Wells Fargo Securities, LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Raymond James & Associates, Inc.
|
| Co-managers: | Mizuho Securities USA LLC, Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc., Regions Securities LLC, Samuel A. Ramirez & Co., Inc. and RBC Capital Markets, LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Hogan Lovells US LLP and Fried, Frank, Harris, Shriver & Jacobson LLP
|
| Counsel to bookrunners: | Paul Hastings LLP
|
| Trade date: | March 31
|
| Settlement date: | April 7
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | April 15, 2032
|
| Coupon: | 3.625%
|
| Price: | 97.517
|
| Yield: | 3.927%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole call at Treasuries plus Treasuries plus 25 bps until Jan. 15, 2031; thereafter at par
|
| Cusip: | 02666TAE7
|
|
|
| 30-year notes
|
| Amount: | $300 million
|
| Maturity: | April 15, 2052
|
| Coupon: | 4.3%
|
| Price: | 97.237
|
| Yield: | 4.468%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Oct. 15, 2051; thereafter at par
|
| Cusip: | 02666TAF4
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
