By Abigail W. Adams
Portland, Me., Oct. 2 – Apollo Commercial Real Estate Finance, Inc. priced $200 million of five-year convertible notes after the market close on Tuesday with a coupon of 5.375%, an initial conversion premium of 10% and a reoffer price of 98.5, according to a company press release.
Pricing came in line with price talk for a fixed coupon of 5.375% and fixed initial conversion premium of 10% and at the cheap end of talk for an issue price of 98.5 to 99.5, according to a market source.
Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the joint bookrunners for the registered offering, which carries a greenshoe of $30 million.
The notes are non-callable, except in the case of a tax event, according to a 424B5 filing with the Securities and Exchange Commission. There is takeover and dividend protection.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Proceeds will be used for general corporate purposes, which may include the repurchase, redemption or exchange of outstanding senior notes and convertible bonds, and acquisition of assets.
Apollo Commercial Real Estate is a New York-based real estate investment trust.
| Issuer: | Apollo Commercial Real Estate Finance Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | Oct. 15, 2023
|
| Bookrunners: | Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC
|
| Coupon: | 5.375%
|
| Price: | 98.5
|
| Conversion premium: | 10%
|
| Conversion price: | $20.53
|
| Conversion rate: | 48.7187
|
| Call options: | Non-callable
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Oct. 2
|
| Settlement date: | Oct. 5
|
| Talk: | Fixed coupon of 5.375%, fixed premium of 10%, issue price of 98.5 to 99.5
|
| Stock symbol: | NYSE: ARI
|
| Stock price: | $18.66 at market close Oct. 2
|
| Market capitalization: | $2.3 billion
|
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