By Kenneth Lim
Boston, Sept. 6 - Washington Real Estate Investment Trust on Wednesday reoffered $100 million of 20-year convertible senior unsecured notes at the rich end of talk, with a reoffer price of 99.5, a coupon of 3.875% and an initial conversion premium of 22%.
The overnight deal was reoffered at 99 to 99.5 during price talk, with the coupon and premium already set. The initial conversion price is $48.78 per trust unit, or an initial conversion rate of 20.09 units per note.
There is an over-allotment option of a further $10 million.
Credit Suisse was the bookrunner of the registered off-the-shelf deal.
The convertibles are non-callable for the first five years, with puts in years five, 10 and 15.
There is a contingent conversion threshold at 130% of the conversion price.
There is a net-share settlement feature.
The convertibles have dividend and takeover protection.
Washington Real Estate Investment Trust, a Rockville, Md.-based investment trust with properties in the greater Washington/Baltimore metro region, said it will use the proceeds to repay its $105 million outstanding of 5.9065% debt due between July 2007 and July 2008.
| Issuer: | Washington Real Estate Investment Trust
|
| Issue: | Convertible senior unsecured notes
|
| Bookrunner: | Credit Suisse
|
| Amount: | $100 million
|
| Greenshoe: | $10 million
|
| Maturity: | Sept. 15, 2026
|
| Coupon: | 3.875%
|
| Price: | Reoffered at 99.5
|
| Yield: | 3.875%
|
| Conversion premium: | 22%
|
| Conversion price: | $48.78
|
| Conversion ratio: | 20.0900
|
| Contingent conversion: | 130%
|
| Net-share settlement: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Sept. 20, 2011
|
| Puts: | Sept. 15, 2011; Sept. 15, 2016; and Sept. 15, 2021
|
| Price talk: | 3.875%, up 22%, reoffered at 99-99.5
|
| Pricing date: | Sept. 6 before the open
|
| Settlement date: | Sept. 11
|
| Distribution: | Registered
|
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