LNR to tender for 10½% notes with deal proceeds, call remainder

New York, Oct. 14 - LNR Property Corp. (Ba3/B+) announced plans to sell at least $275 million of new 10-year senior subordinated notes in a Rule 144A offering and then use at least a portion of the anticipated new-deal proceeds to fund a tender offer for all of its outstanding 10½% senior subordinated notes due 2009.

LNR, a Miami Beach-based real estate investment and finance company, did not give any specific details about the planned tender offer, saying instead that terms and conditions of the tender offer will be announced at a later time. The tender offer will be conditioned upon completion of the new note offering.

The company further said that the 10½% notes will first become redeemable on Jan. 15, and that it expects to redeem on that day all of the 10½% notes that may remain outstanding after the tender offer; however, LNR said it is seeking to acquire as many as possible of the 10½% notes before then, in order to minimize interest costs. LNR will use a portion of the new-deal proceeds to pay the redemption price of the 10½% notes that are still outstanding on Jan. 15.

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