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Washington REIT greenshoe exercised in full, raising 3.875% convertibles offer to $150 million
By Jennifer Chiou
New York, Feb. 2 - Washington Real Estate Investment Trust sold an additional $15 million of 3.875% convertible senior notes due Sept. 15, 2026 after underwriters fully exercised the over-allotment option, according to an 8-K filing with the Securities and Exchange Commission.
Credit Suisse Securities (USA) LLC, A.G. Edwards & Sons, Inc., Robert W. Baird & Co., Inc. and Raymond James & Associates, Inc. exercised the greenshoe to push the offering to $150 million.
Before the open on Jan. 17, the company priced an upsized $135 million add-on to its convertibles, with an initial conversion premium of 20.9%.
As already announced, the overnight deal had the same coupon and initial conversion price as a $100 million issue of 3.875% convertible senior notes due Sept. 15, 2026 that was offered in September. The call protection, puts, conversion rights, dividend and takeover protection and settlement features are also the same.
The size of the add-on was originally $125 million. The over-allotment option was reduced from an additional $18.75 million to $15 million.
The new notes were offered at 100.5.
The convertibles are non-callable for the first four years and may be put in years four, nine and 14.
There is a contingent conversion hurdle at 130% of the conversion price and there is dividend and takeover protection.
The securities have net share settlement.
Washington, a Rockville, Md.-based real estate investment trust with properties in the greater Washington/Baltimore metro region, previously said it will use $69 million of the proceeds to repay debt and the remainder for general purposes.
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