Acadia to price $100 million 20-year convertibles Tuesday at 3.5%-4%, up 20%-25%

By Kenneth Lim

Boston, Dec. 4 - Acadia Realty Trust plans to price on Tuesday after the market closes $100 million of 20-year convertible senior notes, talked at a coupon of 3.5% to 4% and an initial conversion premium of 20% to 25%.

The notes will be offered at par.

There is an over-allotment option for a further $15 million.

Merrill Lynch and Lehman Brothers are the bookrunners of the Rule 144A offering.

The notes will be non-callable for the first five years and will be putable in years five, 10 and 15.

There will be a contingent conversion hurdle at 130% of the conversion price.

The notes will have dividend and takeover protection.

There will be a net-share settlement feature.

Acadia, a White Plains, N.Y.-based real estate investment trust focused on retail properties, plans to use the proceeds of the deal to repay outstanding debt, to fund capital commitments and for general purposes.

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