By Paul A. Harris
Portland, Ore., June 10 – RLJ Lodging Trust, LP priced an upsized $500 million issue of five-year senior secured notes (Ba3/BB-) at par to yield 3¾% in a Thursday drive-by, according to market sources.
The issue size increased from $400 million.
The yield printed at the tight end of yield talk in the 3 7/8% area. Initial guidance was in the low 4% area.
The notes were par 3/8 bid, par 7/8 offered on the break, a trader said.
Wells Fargo Securities LLC was the left bookrunner. Joint bookrunners were BofA Securities Inc., PNC Capital Markets LLC, Capital One Securities Inc., Regions Securities LLC, TD Securities (USA) LLC, SMBC Nikko Securities America Inc., Barclays, Truist Securities Inc. and Scotia Capital (USA) Inc.
Proceeds will be used to pay down term loans due in 2022 and 2023, as well as to repay secured mortgage debt due in 2022, and for general corporate purposes.
The issuer is a self-advised and self-administered Bethesda, Md., real estate investment trust that owns hotels.
| Issuer: | RLJ Lodging Trust, LP
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | July 1, 2026
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | BofA Securities Inc., PNC Capital Markets LLC, Capital One Securities Inc., Regions Securities LLC, TD Securities (USA) LLC, SMBC Nikko Securities America Inc., Barclays, Truist Securities Inc. and Scotia Capital (USA) Inc.
|
| Co-managers: | Raymond James & Associates Inc., BMO Capital Markets Corp. and RBC Capital Markets LLC
|
| Coupon: | 3¾%
|
| Price: | Par
|
| Yield: | 3¾%
|
| Spread: | 303 bps
|
| Call protection: | Two years
|
| Trade date: | June 10
|
| Settlement date: | June 17
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 3 7/8% area
|
| Marketing: | Drive-by
|
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