By Rebecca Melvin
New York, Feb. 5 – Consolidated-Tomoka Land Co. said it has closed on $75 million of new notes in connection with exchange agreements with holders of $57.4 million of its outstanding 4.5% convertible senior notes due 2020 to exchange the notes for a like principal amount of new 3.875% convertible senior notes due 2025, according to a company news release.
The amount was adjusted up from $55.2 million initially reported.
In addition, the company entered into a privately negotiated purchase agreement with an investor to issue about $17.5 million principal amount of the new notes. That amount was adjusted up from $15.8 million initially reported.
The new notes will have an initial conversion price of $78.18, which represents a premium of approximately 20% to the $65.15 closing price of the company’s shares on Wednesday.
Following the exchange, about $11.78 million of the 2020 convertibles remain outstanding.
Daytona, Fla.-based Consolidated-Tomoko is a real estate development company.
| Issuer: | Consolidated-Tomoka Land Co.
|
| Issue: | Convertible senior notes
|
| Amount: | $75 million, including $57.4 million to settle exchange
|
| Maturity: | April 15, 2025
|
| Coupon: | 3.875%
|
| Conversion premium: | 20%
|
| Conversion price: | $78.18
|
| Conversion ratio: | 12.791
|
| Settlement date: | Feb. 3
|
| Distribution: | Private placement
|
| Stock symbol: | NYSE MKT: CTO
|
| Stock price: | $65.15 at close Jan. 29
|
| Market capitalization: | $364.4 million
|
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