Tranche 1: $650m
Maturity: 1 December 2016
Issue/re-offer price: 99.207
Call option: make whole call at Treasuries plus 25bp
Spread at re-offer: 91bp over the 4.625% November 2016 UST
Tranche 2: $600m
Maturity: 1 March 2012
Issue/re-offer price: 99.604
Call option: make whole call at Treasuries plus 20bp
Spread at re-offer: 70bp over the 4.5% November 2011 UST
Launch date: Tuesday 5 December
Payment date: 12 December
Joint books: Greenwich Capital Markets, Merrill Lynch, Pierce, Fenner & Smith Inc, UBS, WachoviaBookrunners' comment:
We came in on Tuesday morning, the market had a very strong tone. Secondary spreads were better by 1bp-2bp. Its 2011s were trading at 67bp bid and its 2017s had tightened to 90bp.
We announced the deal without price guidance and had a strong response. The technicals in the Reit market are strong right now.
We had 80 investors in the five year tranche and 105 in the 10 year.
The total book size was close to $3.5bn across the two tranches. This supported the increase in size from $1bn and our pricing at the tight end of the range.
It tightened 3bp on the break, so it had good follow-on demand in the secondary market.