CorEnergy talks $100 million six-year convertible notes at 5.5%-6%, up 12.5%-17.5%

By Abigail W. Adams

Portland, Me., Aug. 7 – CorEnergy Infrastructure Trust, Inc. plans to price $100 million of six-year convertible notes after the market close on Wednesday with price talk for a coupon of 5.5% to 6% and an initial conversion premium of 12.5% to 17.5%, according to a market source.

Stifel, Nicolaus & Co. Inc. is the bookrunner for the Rule 144A offering, which carries a greenshoe of $20 million.

The notes are non-callable for four years and then subject to a 125% hurdle with a make-whole.

Up to $70 million of the proceeds will be used to repurchase a portion of the outstanding amount of the company’s 7% senior notes due 2020 through a combination of cash and shares.

Remaining proceeds will be used for general corporate purposes, which may include redeeming preferred equity.

CorEnergy is a Kansas City, Mo.-based real estate investment trust.

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