By Kenneth Lim
Boston, Dec. 6 - Acadia Realty Trust on Tuesday priced $100 million of 20-year convertible senior notes within talk, at a coupon of 3.75% and an initial conversion premium of 20%.
The notes were offered at par. They were talked at a coupon of 3.5% to 4% and an initial conversion premium of 20% to 25%.
There is an over-allotment option for a further $15 million.
Merrill Lynch and Lehman Brothers were the bookrunners of the Rule 144A offering.
The notes are non-callable for the first five years, with puts in years five, 10 and 15.
There is a contingent conversion hurdle at 130% of the conversion price.
The notes have dividend and takeover protection.
There is 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.
| Issuer: | Acadia Realty Trust
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Merrill Lynch and Lehman Brothers
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | Dec. 15, 2026
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 20%
|
| Conversion price: | $30.86
|
| Conversion ratio: | 32.4002
|
| Contingent conversion: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Dec. 20, 2011
|
| Puts: | Dec. 20, 2011; Dec. 15, 2016; Dec. 16, 2021
|
| Price talk: | 3.5%-4%, up 20%-25%
|
| Pricing date: | Dec. 5, after the close
|
| Settlement date: | Dec. 11
|
| Distribution: | Rule 144A
|
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