By Paul A. Harris
Portland, Ore., Sept. 9 – RLJ Lodging Trust, LP priced a $500 million issue of eight-year senior secured notes (Ba3/BB-) at par to yield 4% in a Thursday drive-by, according to market sources.
The yield printed at the tight end of the 4% to 4 1/8% yield talk. Initial guidance was in the 4¼% area.
Around noon ET on Thursday the deal was heard to be playing to $700 million of demand, a trader said.
Wells Fargo Securities LLC is the left bookrunner. Joint bookrunners were BofA Securities Inc., PNC Capital Markets LLC, Capital One Securities Inc., Raymond James & Associates, Regions Securities LLC and TD Securities (USA) LLC.
The Maryland-based lodging real estate investment trust plans to use the proceeds to repay the FelCor Lodging Trust Inc. 6% senior notes due 2025.
RLJ and FelCor became combined in a 2017 merger.
| Issuer: | RLJ Lodging Trust, LP
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2029
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Wells Fargo Securities, LLC
|
| Joint bookrunners: | BofA Securities Inc., PNC Capital Markets LLC, Capital One Securities Inc., Raymond James & Associates, Regions Securities LLC and TD Securities (USA) LLC
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Spread: | 285 bps
|
| First call: | Sept. 15, 2024 at 102
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4% to 4 1/8%
|
| Marketing: | Drive-by
|
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