Invitation Homes Announces $300 Million of Privately Placed Senior Unsecured Notes

Rhea-AI Summary

Invitation Homes (NYSE: INVH) has issued $300 million in senior unsecured notes with a weighted average coupon of 2.82%. This placement follows a ‘BBB’ rating from Fitch Ratings, enabling its closure on May 25, 2021. The notes consist of a $150 million tranche maturing in 2028 at 2.46% and another $150 million tranche maturing in 2036 at 3.18%. Proceeds will be utilized for general corporate purposes, including prepayment of high-cost classes of various securitizations maturing between December 2024 and January 2026. The transaction aims to diversify the company's balance sheet.

Positive

• Successfully issued $300 million in senior unsecured notes at a low average coupon of 2.82%.
• Received a 'BBB' rating from Fitch Ratings, facilitating the closure of the transaction.
• Proceeds will allow for voluntary prepayment of high-cost debt, improving financial flexibility.

Negative

• None.

Invitation Homes Inc. (NYSE: INVH) (“Invitation Homes” or the “Company”) announced today that the Company has issued $300 million of privately placed senior unsecured notes (the “Senior Notes”) at a weighted average coupon of 2.82%. To capitalize on a favorable market opportunity earlier this year, Invitation Homes priced and agreed to terms on the Senior Notes prior to obtaining a credit rating, with the closing of the transaction contingent upon achievement of an investment grade rating. After receiving a ‘BBB’ rating from Fitch Ratings, the transaction closed as planned on May 25, 2021.

The Senior Notes are comprised of two tranches: a $150 million 7-year tranche with a coupon of 2.46% maturing in 2028, and a $150 million 15-year tranche with a coupon of 3.18% maturing in 2036. Proceeds will be used for general corporate purposes including voluntary prepayment of the highest-cost classes of various securitizations due to reach final maturity between December 2024 and January 2026.

“This private placement jumpstarts the diversification of our balance sheet toward more unsecured debt and improves the laddering of our maturity schedule,” said Ernie Freedman, Chief Financial Officer. “We are committed to continue moving in this direction and are excited to have additional tools in our toolkit going forward, including access to the public bond market, to facilitate further strengthening of our balance sheet.”

KeyBanc Capital Markets acted as the sole placement agent in connection with the Senior Notes.

The Senior Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the U.S. absent registration or an applicable exemption from the registration requirements under the Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of 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.

About Invitation Homes

Invitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, "Together with you, we make a house a home," reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210526005189/en/

FAQ

What is the recent financial move by Invitation Homes (INVH)?

Invitation Homes issued $300 million in senior unsecured notes to diversify its balance sheet.

What is the weighted average coupon for the new senior notes issued by INVH?

The weighted average coupon for the new senior notes is 2.82%.

When did Invitation Homes close the transaction for the senior notes?

The transaction closed on May 25, 2021.

What will the proceeds from the senior notes be used for?

Proceeds will be used for general corporate purposes, including the prepayment of high-cost securitizations.

What are the maturity dates for the senior notes issued by INVH?

The notes include a $150 million tranche maturing in 2028 and another $150 million tranche maturing in 2036.