Invitation Homes Issues $500 Million of 4.875% Senior Notes due 2035

Invitation Homes Inc. (NYSE: INVH), a leading single-family home leasing and management company, has announced the pricing of a $500 million aggregate principal amount of 4.875% Senior Notes due 2035. The Notes were priced at 98.855% of the principal amount and will mature on February 1, 2035. The offering is expected to close on September 26, 2024, subject to the satisfaction of customary closing conditions. The Notes will be fully and unconditionally guaranteed, jointly and severally, by the Company, Invitation Homes OP GP LLC, and IH Merger Sub, LLC.

The Operating Partnership intends to use the net proceeds from the offering for general corporate purposes, which may include, without limitation, repayment of indebtedness, working capital, acquisitions and renovations of single-family properties, and for related activities in accordance with the Company’s business strategy. The Company has engaged several investment banks, including PNC Capital Markets LLC, Deutsche Bank Securities, Mizuho, Wells Fargo Securities, BNP PARIBAS, BofA Securities, Capital One Securities, Goldman Sachs & Co. LLC, J.P. Morgan, and US Bancorp, as the joint book-running managers of the offering.

The issuance of $500 million of senior notes will have a significant impact on Invitation Homes' debt-to-equity ratio and overall leverage. The additional debt will increase the Company's total debt obligations, potentially leading to a higher debt-to-equity ratio. However, the use of proceeds for general corporate purposes, including the repayment of indebtedness, will help the Company manage its debt levels and maintain a balanced capital structure.

The use of proceeds aligns with the Company's strategic goals and growth plans. Invitation Homes aims to expand its portfolio of single-family rental properties by acquiring and renovating homes. By using the net proceeds to fund these activities, the Company can strengthen its market position and generate additional revenue streams. Additionally, the repayment of indebtedness will improve the Company's liquidity and reduce its financial risks.

In conclusion, Invitation Homes' issuance of $500 million of 4.875% Senior Notes due 2035 is a strategic move that aligns with the Company's business strategy and growth objectives. The low interest rate and the use of proceeds for general corporate purposes, including the repayment of indebtedness and acquisitions and renovations of single-family properties, will help the Company maintain a strong financial position and capitalize on market opportunities. Investors should monitor the Company's progress in managing its debt levels and leveraging its capital structure to achieve long-term success.