Invitation Homes Announces $600M Senior Notes Pricing Due 2033
Invitation Homes Inc. a leading owner and operator of single-family rental homes in the United States, has announced that its operating partnership, Invitation Homes Operating Partnership LP (the “Operating Partnership”), has priced a public offering of $600 million in aggregate principal amount of 4.950% Senior Notes due January 15, 2033 (the “Notes”).
The Notes were priced at 99.477% of their principal amount, resulting in an effective yield that closely reflects market interest rate conditions. The offering is scheduled to close on August 15, 2025, subject to the satisfaction of customary closing conditions. Once issued, these Notes will represent unsecured senior obligations of the Operating Partnership and will be fully and unconditionally guaranteed, jointly and severally, by:
- Invitation Homes Inc.
- Invitation Homes OP GP LLC
- IH Merger Sub, LLC
Purpose of the Offering
The Operating Partnership plans to use the net proceeds from this issuance for general corporate purposes. This broad category can include a range of strategic and operational initiatives. One of the most likely uses, as disclosed in the company’s statement, is the repayment of outstanding indebtedness under its revolving credit facility.
Reducing outstanding borrowings is a common corporate finance strategy that can help:
- Lower interest expenses – potentially improving net income and cash flow.
- Enhance financial flexibility – by freeing up credit capacity for future needs.
- Strengthen the balance sheet – which may support a better credit rating over time.
Details of the Offering
The Senior Notes will:
- Bear interest at 4.950% annually, payable semi-annually in arrears.
- Mature on January 15, 2033, giving them an approximately 8-year term from the issue date.
- Be issued at 99.477% of the principal amount, which represents a slight discount to par, a common practice that aligns the yield with prevailing market rates.
The offering was well-supported by the market, underscoring investor confidence in Invitation Homes’ business model and creditworthiness.
Underwriting and Book-Running Managers
The offering has been structured with the support of some of the most prominent investment banks and financial institutions. Joint book-running managers include:
- BofA Securities
- BMO Capital Markets
- J.P. Morgan
- Capital One Securities
- Deutsche Bank Securities
- M&T Securities
- Mizuho
- Morgan Stanley
- PNC Capital Markets LLC
- RBC Capital Markets
- Wells Fargo Securities
In addition, a broad team of co-managers is participating, further diversifying distribution channels and enhancing the placement capacity of the transaction. These include:
- KeyBanc Capital Markets
- Regions Securities LLC
- U.S. Bancorp
- BNP Paribas
- BNY Capital Markets
- Goldman Sachs & Co. LLC
- Huntington Capital Markets
- Truist Securities
- Citigroup
- R. Seelaus & Co., LLC
- Scotiabank
This extensive syndicate reflects both the scale of the issuance and the appeal of Invitation Homes’ credit profile to institutional investors.
Regulatory Framework and Filing with the SEC
The offering is being conducted pursuant to an effective shelf registration statement previously filed by:
- Invitation Homes Inc.
- Invitation Homes Operating Partnership LP
- Invitation Homes OP GP LLC
- IH Merger Sub, LLC
This shelf registration allows the company to offer and sell securities more quickly to the public without having to file a new registration statement each time.
A prospectus supplement and an accompanying base prospectus relating to the offering will be filed with the Securities and Exchange Commission (SEC). These documents provide detailed disclosures regarding:
- The terms of the Notes
- Risk factors
- Use of proceeds
- Financial condition of the company
Once filed, these documents will be available to the public on the SEC’s EDGAR database at Investors will also be able to request copies directly from the lead underwriters at the toll-free numbers provided by BofA Securities, BMO Capital Markets, and J.P. Morgan.
No Offer or Sale Where Unlawful
As required under securities law, the company made clear that this press release does not constitute an offer to sell or solicit an offer to buy the Notes in any jurisdiction where such activity would be unlawful without proper registration or qualification. The formal sale process will comply fully with applicable securities regulations in each jurisdiction.
About Invitation Homes
Invitation Homes (NYSE: INVH) is the nation’s premier single-family home leasing company, owning and operating more than 80,000 homes across the United States. The company’s portfolio is concentrated in desirable neighborhoods within high-growth markets, offering residents the convenience of professional property management combined with the privacy and comfort of a single-family home.
The company focuses on providing:
- High-quality homes in attractive school districts
- Professional maintenance and management services
- Flexible leasing options tailored to residents’ needs
Its business model is designed to capitalize on shifting housing preferences, including the growing demand for rental housing among families and professionals who value flexibility and mobility without sacrificing the feel of a traditional home.
Financial Strategy and Capital Structure
This $600 million bond issuance is part of Invitation Homes’ broader capital strategy, which emphasizes:
- Prudent leverage management – balancing debt and equity to maintain a solid credit profile.
- Access to diversified funding sources – including equity, unsecured debt, and secured credit facilities.
- Capital recycling – selling non-core assets and redeploying capital into higher-growth opportunities.
By locking in a fixed interest rate of 4.950% for the next eight years, Invitation Homes mitigates exposure to potential interest rate volatility. This can be particularly advantageous in an environment where market rates are subject to uncertainty due to macroeconomic factors, such as inflation trends and central bank policy decisions.
