Colony Sells $559 Million of Rental Bonds in Fifth Deal
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Colony Capital LLC’s Colony American Homes Inc. completed the fifth-ever sale of bonds backed by U.S. rental homes, with a $558.5 million offering in the new market.
The company sold $291.2 million of top-rated floating-rate notes to yield 95 basis points, or 0.95 percentage point, more than a benchmark rate, said a person with knowledge of the deal, who asked not to be named because they’re not authorized to speak publicly. That was 5 basis points less than the previously tightest spread for AAA notes in such transactions, which was garnered last month in sales by both Blackstone Group LP’s Invitation Homes and American Homes 4 Rent.