By Kenneth Lim
Boston, Sept. 19 - First Industrial Realty Trust Inc. on Tuesday sold $175 million of five-year exchangeable senior unsecured notes on Tuesday below original guidance, at a reoffered price of 99, a coupon of 4.625% and an initial conversion premium of 20%.
The exchangeables were originally offered at par. Price talk also guided for a coupon of 4.125% to 4.625% and an initial exchange premium of 20%.
The notes are issued by First Industrial Realty's operating partnership, First Industrial LP, and will be exchangeable into common shares of the listed company. First Industrial Realty is guaranteeing the notes.
There is an over-allotment option for a further $25 million.
JP Morgan, Credit Suisse and Merrill Lynch were the bookrunners of the Rule 144A offering.
The notes are non-callable for life.
There is a contingent exchange hurdle at 130% of the exchange price.
The exchangeables are protected for payouts above First Industrial Realty's current quarterly dividend of 70 cents per common share, and may be put in a change of control of the company.
First Industrial, a Chicago-based real estate investment trust that develops industrial real estate in the United States and Canada, said it will enter into hedging transactions using the proceeds of the deal. It will also use the proceeds to reduce its borrowings on a 5.867% loan, acquire and develop properties and pay off the $150 million outstanding of 7% senior notes due Dec. 1, 2006, upon the maturity of that debt security.
| Issuer: | First Industrial LP
|
| Issue: | Exchangeable senior notes
|
| Exchange property: | First Industrial Realty Trust Inc. common stock
|
| Bookrunner: | JP Morgan, Credit Suisse and Merrill Lynch
|
| Amount: | $175 million
|
| Greenshoe: | $25 million
|
| Maturity: | Sept. 15, 2011
|
| Coupon: | 4.625%
|
| Price: | Par, reoffered at 99
|
| Yield: | 4.625%
|
| Conversion premium: | 20%
|
| Conversion price: | $50.9280
|
| Conversion ratio: | 19.6356
|
| Contingent conversion: | 130%
|
| Cash settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable for life
|
| Puts: | None
|
| Price talk: | 4.125%-4.625%, up 20%, offered at par
|
| Pricing date: | Sept. 19 after the close
|
| Guarantees: | First Industrial Realty Trust Inc.
|
| Distribution: | Rule 144A
|
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