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LNR Property tenders for 10½% notes
New York, Oct. 15 - LNR Property Corp. (Ba3/B+) said that it has begun a tender offer for all of its outstanding 10½% senior subordinated notes due 2009.
The tender offer will expire at 5 p.m. ET on Nov. 13, subject to possible extension. Tendered notes may be withdrawn at any time until the expiration deadline.
LNR said it would repurchase the notes at a price equal to 106.892% of their principal amount, plus accrued interest up to, but not including, the payment date for the notes, which is expected to be on Nov. 14.
The company separately announced that it had agreed to sell $300 million of new 7¼% senior subordinated notes due 2013 in a Rule 144A transaction; the proceeds will be used to fund the tender offer.
As previously announced, LNR, a Miami Beach, Fla.-based real estate investment and finance company, said on Oct. 14 that it would 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.
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.
Deutsche Bank Securities is acting as dealer manager for the offer. U.S. Bank Trust NA will be the depositary to which tendered notes must be delivered by book-entry transfer through The Depositary Trust Co. MacKenzie Partners, Inc. is the information agent (800 322-2885).
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