Published on 8/5/2021 in the Prospect News Investment Grade Daily.
New Issue: Mid-America Apartments prices $600 million of notes due 2026, 2051
By Devika Patel
Knoxville, Tenn., Aug. 5 – Mid-America Apartments, LP priced $600 million of fixed-rate senior notes in two tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $300 million of 1.1% notes due Sept. 15, 2026 at a spread of Treasuries plus 47 basis points. These notes priced at 99.553 to yield 1.191% and were talked in the Treasuries plus 75 bps area.
Mid-America Apartments priced $300 million of 2.875% notes due Sept. 15, 2051 with a Treasuries plus 107 bps spread. These notes priced at 98.588 to yield 2.946% and were talked in the Treasuries plus 135 bps area.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., PNC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used to repay upcoming debt maturities. Repayment will include the partial redemption of $250 million of the operating partnership’s 3.375% senior notes due December 2022 and $149 million of its 4.17% senior guaranteed notes due Nov. 30, 2022, 5.57% senior guaranteed notes due July 29, 2023 and 4.33% senior guaranteed notes due Nov. 30, 2024.
Mid-America Apartments is a Germantown, Tenn.-based real estate investment trust.
| Issuer: | Mid-America Apartments, LP
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., PNC Capital Markets LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Senior co-managers: | BMO Capital Markets Corp., Capital One Securities, Inc., Fifth Third Securities, Inc., KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, Regions Securities LLC, TD Securities (USA) LLC and Truist Securities, Inc.
|
| Trustee: | U.S. Bank NA
|
| Counsel to issuer: | Bass, Berry & Sims plc
|
| Counsel to bookrunners: | Sidley Austin LLP
|
| Co-manager: | FHN Financial Securities Corp.
|
| Trade date: | Aug. 5
|
| Settlement date: | Aug. 19
|
| Distribution: | SEC registered
|
|
|
| 2026 notes
|
| Amount: | $300 million
|
| Maturity: | Sept. 15, 2026
|
| Coupon: | 1.1%
|
| Price: | 99.553
|
| Yield: | 1.191%
|
| Spread: | Treasuries plus 47 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Aug. 15, 2026, then a par call
|
| Price guidance: | Treasuries plus 75 bps area
|
| Cusip: | 59523UAT4
|
|
|
| 2051 notes
|
| Amount: | $300 million
|
| Maturity: | Sept. 15, 2051
|
| Coupon: | 2.875%
|
| Spread: | Treasuries plus 107 bps
|
| Price: | 98.588
|
| Yield: | 2.946%
|
| Call: | Make-whole call at Treasuries plus 20 bps until March 15, 2051, then a par call
|
| Price guidance: | Treasuries plus 135 bps area
|
| Cusip: | 59523UAU1
|
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