By Paul A. Harris
Portland, Ore., April 20 – Adler Real Estate AG priced €800 million of senior notes (BB) in two tranches on Friday, according to a market source.
The deal, which came in an investment-grade style execution, featured €500 million of 1 7/8% five-year notes that priced at mid-swaps plus 170 basis points, tight to talk in the mid-swaps plus 175 bps area. The bonds were sold at a reoffer price of 98.896 to yield 2.11%.
The deal also included €300 million of 3% eight-year notes that priced at mid-swaps plus 240 bps, tight to talk in the 250 bps area. The eight-year notes were sold at a reoffer price of 98.491 to yield 3.217%.
Global coordinator and joint bookrunner J.P. Morgan Securities plc will bill and deliver.
The proceeds will be used primarily to refinance a bridge loan structured in connection with the acquisition of Brack Capital Properties NV, to fund a tender offer of up to €200 million of its €500 million 4¾% notes and for general corporate purposes.
The tender offer was also announced on Thursday.
The issuer is a Berlin-based property management company.
| Issuer: | Adler Real Estate AG
|
| Amount: | €800 million
|
| Securities: | Senior notes
|
| Global coordinator: | J.P. Morgan Securities plc (bill and deliver)
|
| Joint bookrunners: | Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley
|
| Trade date: | April 20
|
| Settlement date: | April 27
|
| Rating: | S&P: BB
|
| Distribution: | Regulation S
|
| Marketing: | Accelerated bookbuilding
|
|
|
| Five-year notes
|
| Amount: | €500 million
|
| Maturity: | April 27, 2023
|
| Coupon: | 1 7/8%
|
| Price: | 98.896
|
| Yield: | 2.11%
|
| Spread: | Mid-swaps plus 170 bps
|
| Call protection: | Make-whole call at Bunds plus 50 bps until three months prior to maturity, then callable at par, otherwise non-callable
|
| Price talk: | Mid-swaps plus 175 bps area
|
|
|
| Eight-year notes
|
| Amount: | €300 million
|
| Maturity: | April 27, 2026
|
| Coupon: | 3%
|
| Price: | 98.491
|
| Yield: | 3.217%
|
| Spread: | Mid-swaps plus 240 bps
|
| Call protection: | Make-whole call at Bunds plus 45 bps until two months prior to maturity, then callable at par, otherwise non-callable
|
| Price talk: Mid-swaps plus 250 bps area
|
© 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.
