By Sara Rosenberg
New York, May 7 - Capital Automotive REIT sold $100 million convertible 20-year notes at par to yield 6% with a 30% initial conversion premium via sole manager Credit Suisse First Boston.
The deal, which priced after the close Thursday, came to market at the high end of yield talk for a 5.5% to 6.0% coupon and towards the middle of premium guidance of 28% to 33%.
There is a $10 million greenshoe.
The notes will be non-callable for five years with puts in years five, 10 and 15.
Holders will have full dividend protection.
Capital Automotive is a McLean, Va., real estate investment trust that acquires real property and improvements used by operators of multi-site, multi-franchised automotive dealerships and related businesses.
Proceeds will be used to repay $92 million of mortgage debt and to repay bank borrowings.
Terms of the deal are:
| Issuer: | Capital Automotive REIT
|
| Issue: | Convertible notes
|
| Bookrunner: | Credit Suisse First Boston
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| Amount: | $100 million
|
| Greenshoe: | $10 million
|
| Maturity: | May 15, 2024
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| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 30%
|
| Conversion price: | $35.5679
|
| Conversion ratio: | 28.1152
|
| Call: | Non-callable for five years
|
| Put: | Five, 10 and 15
|
| Price talk: | 5.5% to 6.0% coupon, up 28% to 33%
|
| Pricing date: | May 6, after the close
|
| Settlement date: | May 12
|
| Distribution: | Off the shelf
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