Casino real estate investment trust Gaming and Leisure Properties Inc. priced a two-tranche offering of $400.0 million of senior notes due 2024 at a 3.350% coupon rate and $700.0 million of senior notes due 2030 at a 4.000% coupon rate.
The notes will be issued by GLP Capital LP and GLP Financing II Inc., and estimated net proceeds are expected to be about $1.09 billion. The offering is anticipated to close Aug. 29.
The issuers aim to use roughly $340.0 million of the net proceeds to repay outstanding borrowings under the operating partnership's revolving credit facility and about $236.0 million to repay outstanding borrowings under the operating partnership's term loan A-1 facility. Approximately $512.0 million of the net proceeds will go toward funding a cash tender offer to buy up to $500.0 million of the issuers' outstanding 4.875% senior unsecured notes due Nov. 1, 2020.
Wells Fargo Securities LLC, BofA Securities Inc., Fifth Third Securities Inc., J.P. Morgan Securities LLC, Barclays Capital Inc., Citizens Capital Markets Inc., Credit Agricole Securities (USA) Inc., M&T Securities Inc. and SunTrust Robinson Humphrey Inc. are the joint book-running managers.