By Kenneth Lim
Boston, Oct. 5 - HRPT Properties Trust on Thursday priced an upsized $330 million of series D convertible preferred stock within talk, at a dividend of 6.5% and an initial conversion premium of 10.9%.
The 13.2 million preferred shares were offered at par of $25 apiece, and were talked at a dividend of 6.25% to 6.75% and an initial conversion premium of 10% to 15%.
The size of the deal was originally $250 million, or 10 million preferred shares. The over-allotment option was set at a further $49.5 million, or 1.98 million preferred shares.
Merrill Lynch and Banc of America Securities were the bookrunners of the registered deal.
The convertibles will be non-callable for the first five years, with a provisional call at 100% of the conversion price.
The preferreds have dividend protection for quarterly cash payouts above 21 cents per common share. They also have takeover protection through a conversion rate adjustment.
HRPT, a Newton, Mass.-based real estate investment trust focusing on office and industrial real estate, said it will use the proceeds of the deal to reduce its outstanding revolving debt.
| Issuer: | HRPT Properties Trust
|
| Issue: | Convertible preferred stock
|
| Bookrunner: | Merrill Lynch and Banc of America Securities
|
| Amount: | $330 million
|
| Greenshoe: | $49.5 million
|
| Maturity: | Perpetual
|
| Dividend: | 6.5%
|
| Price: | Par of $25
|
| Yield: | 6.5%
|
| Conversion premium: | 10.9%
|
| Conversion price: | $13.00
|
| Conversion ratio: | 1.9231
|
| Dividend protection: | Conversion rate adjustments if quarterly common dividend exceeds 21 cents
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Nov. 20, 2011; thereafter subject to 100% hurdle
|
| Price talk: | 6.25%-6.75%, up 10%-15%
|
| Pricing date: | Oct. 5 after the close
|
| Settlement date: | Oct. 11
|
| Distribution: | Registered
|
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