NEW YORK, May 13 (IFR) - American Homes 4 Rent (AH4R) is poised to price the Triple A rated class of its new single-family rental bond at Libor plus 100bp on Tuesday, the tightest level to date for the nascent sector.
Lead managers Goldman Sachs (structuring), JPMorgan and Wells Fargo, who had already narrowed price guidance on the US$482.7m six-tranche home rental bond deal Monday, tightened talk further at launch stage by 10-35bp on strong investor demand.
One strategist called the tightening "a big move," for the new single-family rental sector, which has so far only seen three deals come to market.
While guidance on the US$270.396m A class tranche was tightened by 10bps, lower rated tranches saw even bigger moves. The trade's bottom US$32.7m F tranche is now expected to print at Libor plus 360bp, 35bp tighter than price talk levels announced Monday.
Spreads in the middle also narrowed in a 10bp-20bp band from Monday's guidance. (Reporting by Joy Wiltermuth; Editing by Natalie Harrison)