PHOENIX, Nov. 9, 2020 /PRNewswire/ -- VEREIT, Inc. (NYSE: VER) ("VEREIT") announced today that its operating partnership, VEREIT Operating Partnership, L.P. (the "Operating Partnership" and, together with VEREIT, the "Company"), priced an offering of $1.2 billion aggregate principal amount of senior notes, consisting of $500.0 million aggregate principal amount of 2.200% senior notes due 2028 at an issue price of 98.881% of par value (the "2028 Notes") and $700.0 million aggregate principal amount of 2.850% senior notes due 2032 at an issue price of 98.928% of par value (the "2032 Notes" and, together with the 2028 Notes, the "Notes"). Interest on the Notes will be payable in cash and will accrue at a rate of 2.200% per annum for the 2028 Notes and 2.850% for the 2032 Notes. The Notes will be senior unsecured obligations of the Operating Partnership, guaranteed by VEREIT. The offering of Notes is expected to close on November 17, 2020, subject to the satisfaction of customary closing conditions.
The Operating Partnership intends to use the net proceeds from the offering of the Notes, together with borrowings under its revolving credit facility or cash on hand, to (i) repay amounts outstanding under its credit facility term loan, including accrued and unpaid interest, and (ii) settle certain interest rate swap agreements, including swap termination costs, in each case contemporaneously with, or shortly after, the closing of the offering. The remainder of the net proceeds from the offering, if any, will be used for general corporate purposes.
Wells Fargo Securities, LLC, Barclays Capital Inc., BMO Capital Markets Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., Capital One Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Regions Securities LLC and SMBC Nikko Securities America, Inc. are acting as joint book-running managers, and BNY Mellon Capital Markets, LLC, KeyBanc Capital Markets Inc., Comerica Securities, Inc., FHN Financial Securities Corp. and Janney Montgomery Scott LLC are acting as co-managers for the offering of the Notes. The offering of the Notes was made under an effective shelf registration statement of VEREIT and the Operating Partnership previously filed with the Securities and Exchange Commission ("SEC"). When available, a copy of the final prospectus supplement and prospectus relating to the offering may be obtained from Wells Fargo Securities, LLC at 608 2nd Avenue South, Suite 1000, Attn: WFS Customer Service, Minneapolis, MN 55402 or by calling 800-645-3751; Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (888) 603-5847 or email: [email protected]; BMO Capital Markets Corp. at 3 Times Square, 27thFloor, Attn: US Syndicate, New York, NY 10036, or by calling 866-864-7760; BofA Securities, Inc. at 200 North College Street, NC1-004-03-43, Attn: Prospectus Department, Charlotte, NC 28255 or by calling 800-294-1322; J.P. Morgan Securities LLC at 383 Madison Ave., Attn: Investment Grade Syndicate Desk, New York, NY 10179 or by calling collect 212-834-4533; U.S. Bancorp Investments, Inc. at 214 N. Tryon Street, 26th Floor, Charlotte, North Carolina 28202, Attention: Credit Fixed Income; or by calling 877-558-2607; or by visiting the EDGAR database on the SEC's web site at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of VEREIT or the Operating Partnership, nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any such offer or sale will be made only by means of the prospectus supplement and prospectus forming part of the effective registration statement relating to these securities.
About the Company
VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. The Company has total real estate investments of $14.6 billion including approximately 3,800 properties and 88.9 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties.
Information set forth herein contains forward-looking statements, which reflect VEREIT's and the Operating Partnership's expectations regarding future results, events and plans, including but not limited to statements regarding the closing of the offering of Notes and the use of the proceeds therefrom. Generally, the words "anticipates," "assumes," "believes," "continues," "could," "estimates," "expects," "goals," "intends," "may," "plans," "projects," "seeks," "should," "targets," "will," variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available and involve a number of known and unknown assumptions and risks, uncertainties and other factors, which are difficult to predict and beyond VEREIT's and the Operating Partnership's control, that could cause actual events and plans or could cause VEREIT's and the Operating Partnership's business, financial condition, liquidity and results of operations to differ materially from those expressed or implied in the forward-looking statements. These factors include the risks and uncertainties detailed from time to time in VEREIT's and the Operating Partnership's filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available at the SEC's website at www.sec.gov. VEREIT and the Operating Partnership disclaim any obligation to publicly update or revise any forward-looking statements contained in this press release, whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law.
SOURCE VEREIT, Inc.