Published on 8/8/2023 in the Prospect News Investment Grade Daily.
New Issue: NNN REIT prices $500 million of 5.6% notes due 2033
Chicago, Aug. 8 – NNN REIT, Inc. priced $500 million of 5.6% notes due 2033 (Baa1/BBB+) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 97.676 to yield 5.905%, or at Treasuries plus 187.5 basis points.
The issuer may redeem the notes early via a make-whole call with a Treasuries plus 30 bps premium until the notes become callable at par during the three months before the maturity date.
BofA Securities, Inc., Wells Fargo Securities, LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc. led the sale.
PNC Capital Markets LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC and Truist Securities, Inc. also worked to place the notes.
Proceeds will be used to repay all outstanding debt under the company’s credit facility, to fund future property acquisitions and for general corporate purposes.
As of June 30, the company had $4.1 billion of outstanding debt, none of which was secured.
The company is an Orlando, Fla.-based real estate investment trust. The previous name for the company was National Retail Properties, Inc.
| Issuer: | NNN REIT, Inc.
|
| Amount: | $500 million
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| Issue: | Notes
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| Maturity: | Oct. 15, 2033
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| Bookrunners: | BofA Securities, Inc., Wells Fargo Securities, LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC and Truist Securities, Inc.
|
| Co-managers: | Capital One Securities, Inc., Raymond James & Associates, Inc., Stifel, Nicolaus & Co, Inc.
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Pillsbury Winthrop Shaw Pittman LLP
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| Counsel to underwriters: | Vinson & Elkins LLP
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| Coupon: | 5.6%
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| Price: | 97.676
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| Yield: | 5.905%
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| Spread: | Treasuries plus 387.5 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps until July 15, 2033; thereafter at par
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| Trade date: | Aug. 8
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| Settlement date: | Aug. 15
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Distribution: | SEC registered
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| Cusip: | 637417AS5
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