By Paul A. Harris
St. Louis, March 11 - Reckson Operating Partnership LP, an issuing entity of SL Green Realty Corp., priced a $250 million issue of 10-year senior unsecured notes (Ba2/BB+/BB+) at par to yield 7¾% on Thursday, according to an informed source.
The yield printed on top of the price talk.
Citigroup Global Markets Inc., Bank of America Merrill Lynch and Deutsche Bank Securities Inc. ran the books for the issue, which was priced off the high-grade desk.
Proceeds will be used to fund the company's previously announced tender offer for certain outstanding notes of Reckson and SL Green OP, with the remaining proceeds, if any, being used for general corporate purposes and/or working capital.
The issuer is a New York-based real estate investment trust.
| Issuer: | Reckson Operating Partnership LP (SL Green Realty Corp.)
|
| Amount: | $250 million
|
| Maturity: | March 16, 2020
|
| Securities: | Senior unsecured notes
|
| Bookrunners: | Citigroup Global Markets Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc.
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 402 bps
|
| Call protection: | Non-callable (Make-whole at Treasuries plus 50 bps)
|
| Trade date: | March 11
|
| Settlement date: | March 16
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Fitch: BB+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 7¾% area
|
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