By Andrea Heisinger
New York, Dec. 7 - ERP Operating LP priced a $1 billion issue of 4.625% 10-year senior notes on Wednesday to yield Treasuries plus 265 basis points, a source close to the trade said.
The size of the trade was doubled from $500 million.
The securities were priced at the tight end of guidance in the 270 bps area.
The notes (Baa1/BBB+/BBB+) were sold at 99.619 to yield 4.673%. The notes have a make-whole call at Treasuries plus 40 bps before Sept. 15, 2021 and can be redeemed after that date at par.
Bookrunners were Bank of America Merrill Lynch, Barclays Capital Inc. and Morgan Stanley & Co. LLC.
Deutsche Bank Securities Inc. and RBC Capital Markets LLC were the co-managers.
Proceeds will be used for working capital and general company purposes, including repayment of an outstanding balance under an unsecured revolving credit facility.
ERP Operating last priced debt in a $600 million sale of 4.75% notes due 2020 on July 12, 2010 at Treasuries plus 180 bps.
The multi-family residential property arm of Equity Residential is based in Chicago.
| Issuer: | ERP Operating LP
|
| Issue: | Senior notes
|
| Amount: | $1 billion, increased from $500 million
|
| Maturity: | Dec. 15, 2021
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Morgan Stanley & Co. LLC
|
| Co-managers: | Deutsche Bank Securities Inc., RBC Capital Markets LLC
|
| Coupon: | 4.625%
|
| Price: | 99.619
|
| Yield: | 4.673%
|
| Spread: | Treasuries plus 265 bps
|
| Call: | Make-whole at Treasuries plus 40 bps before Sept. 15, 2021, after at par
|
| Trade date: | Dec. 7
|
| Settlement date: | Dec. 12
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
| Price talk: | 270 bps area
|
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