By Angela McDaniels
Tacoma, Wash., Jan. 4 – Colony Starwood Homes priced $300 million of 3.5% convertible senior notes due 2022 at par with a 25% initial conversion premium on Wednesday, according to a company news release.
The offering was upsized from $250 million and has a $45 million greenshoe, increased from $37.5 million.
The issue was talked at a 3.25% to 3.75% yield with a conversion premium of 20% to 25%, according to a market source.
Morgan Stanley & Co. LLC is running the books.
The convertibles are non-callable, except to the extent necessary to maintain the company’s real estate investment trust status.
The notes are putable in certain circumstances, including upon a fundamental change.
Conversions will be settled with common stock, cash or a combination.
Proceeds from the Rule 144A offering will be used to privately repurchase some of the issuer’s 4.5% convertible senior notes due 2017, to repay a portion of borrowings outstanding under its credit facilities, to fund potential acquisitions and for general corporate purposes.
Scottsdale, Ariz.-based Colony Starwood is an owner of single family rental homes.
| Issuer: | Colony Starwood Homes
|
| Issue: | Convertible senior notes
|
| Amount: | $300 million, upsized from $250 million
|
| Greenshoe: | $45 million, upsized from $37.5 million
|
| Maturity: | Jan. 15, 2022
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $36.88
|
| Conversion ratio: | 27.1186
|
| Call: | Non-callable
|
| Puts: | In certain circumstances, including upon a fundamental change
|
| Pricing date: | Jan. 4
|
| Settlement date: | Jan. 10
|
| Distribution: | Rule 144A
|
| Price talk: | 3.25% to 3.75% yield, up 20% to 25%
|
| Stock symbol: | NYSE: SFR
|
| Stock price: | $29.50 at close Jan. 4
|
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