Brookfield Property downsizes to $750 million, launches 5.5-year secured notes at 4½%

By Paul A. Harris

Portland, Ore., Sept. 22 – Brookfield Property REIT Inc. downsized its offering of senior secured notes due 2027 (existing ratings B1/BB+) to $750 million from $1 billion and launched the deal at 4½% on Wednesday, according to market sources.

Books close at 2:30 p.m. ET on Wednesday, with the notes set to price thereafter. The offering was originally announced as a Tuesday drive-by but was subsequently held in the market overnight.

Wednesday morning's launch comes in the middle of price talk in the 4½% area. Initial guidance was in the mid-4% area.

Wells Fargo is the left bookrunner. Morgan Stanley, Deutsche Bank, RBC, BofA, Barclays, Citigroup, Goldman Sachs, Sumitomo, Mitsui, TD and U.S. Bancorp are the joint bookrunners.

The Rule 144A and Regulation S for life 5.5-year notes become callable after two years at par plus 50% of the coupon.

The issuing entities are Brookfield Property REIT, along with BPR Cumulus LLC, BPR Nimbus LLC and GGSI Sellco, LLC.

The Toronto-based real estate investment trust plans to use the proceeds to pay down its line of credit.

© 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.