By Kenneth Lim
Boston, Dec. 6 - First Potomac Realty Trust on Tuesday priced an upsized $110 million of five-year exchangeable senior notes within talk, at a coupon of 4% and an initial exchange premium of 20%, and reoffered at 99.5.
The notes were talked at the same terms, with a reoffered price between 99.25 and 99.75.
The size of the deal was originally $100 million. The over-allotment option remains at a further $15 million.
Wachovia Securities was the bookrunner of the Rule 144A offering.
The notes are issued by First Potomac operating partnership First Potomac Realty Investment LP and exchangeable into common stock of the listed company. The holding company will also guarantee the notes.
The initial exchange price was set at $36.12 per share, or an initial exchange rate of 27.6855 shares per note.
The exchangeables are non-callable and may not be put.
There is a contingent exchange hurdle at 130% of the exchange price.
The notes have dividend and takeover protection.
There is a net-share settlement option.
First Potomac, a Bethesda, Md.-based real estate investment trust that owns industrial and flex properties in the Washington metropolitan area, Virginia and Maryland, will use the proceeds of the deal to repay outstanding debt, to fund hedging transactions and for general purposes, including future acquisitions.
| Issuer: | First Potomac Realty Investment LP
|
| Issue: | Exchangeable senior notes
|
| Exchange property: | First Potomac Realty Trust common stock
|
| Bookrunner: | Wachovia Securities
|
| Amount: | $110 million
|
| Greenshoe: | $15 million
|
| Maturity: | Dec. 15, 2011
|
| Coupon: | 4%
|
| Price: | Par, reoffered at 99.5
|
| Yield: | 4%
|
| Exchange premium: | 20%
|
| Exchange price: | $36.12
|
| Exchange ratio: | 27.6855
|
| Exchange conversion: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 4%, up 20%, reoffered at 99.25-99.75
|
| Pricing date: | Dec. 5, after the close
|
| Settlement date: | Dec. 11
|
| Guarantees: | First Potomac Realty Trust
|
| Distribution: | Rule 144A
|
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