Inland Real Estate prices upsized $170 million 20-year convertibles to yield 4.625%, up 15%

New York, Nov. 7 - Inland Real Estate Corp. priced an upsized $170 million of 20-year convertible senior notes after the close Tuesday, selling them to yield 4.625% with a 15% initial conversion premium.

The deal came at the cheap end of talk, which put the coupon at 4.125% to 4.625% and the initial conversion premium at 15% to 20%.

The conversion price is $20.70 and the conversion ratio 48.3092.

Wachovia Securities is the bookrunner of the Rule 144A deal.

There is an over-allotment option for a further $10 million, reduced from the planned $22.5 million.

The convertibles will be non-callable for the first five years with puts in years five, seven and 10.

There will be dividend and takeover protection.

Inland Real Estate is an Oak Brook, Ill.-based real estate investment trust that owns and operates neighborhood retail centers and community centers primarily in Oak Brook. It will use the proceeds of the deal to buy back up to $50 million of its own common stock, pay back an existing loan with Key Bank NA and for general purposes.

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