By Kenneth Lim
Boston, Nov. 8 - Inland Real Estate Corp. on Tuesday priced an upsized $170 million of 20-year convertible senior notes at the cheap end of talk, at a coupon of 4.625% and an initial conversion premium of 15%.
The convertibles were offered at par, and price talked guided for a coupon of 4.125% to 4.625% and an initial conversion premium of 15% to 20%.
The size of the deal was originally $150 million. The over-allotment option, however, was reduced to $10 million from $22.5 million.
Wachovia Securities was the bookrunner of the Rule 144A deal.
The convertibles are non-callable for the first five years, with puts in years five, seven, 10 and 15.
There is 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.
| Issuer: | Inland Real Estate Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Wachovia Securities
|
| Amount: | $170 million
|
| Greenshoe: | $10 million
|
| Maturity: | Nov. 15, 2026
|
| Coupon: | 4.625%
|
| Price: | Par
|
| Yield: | 4.625%
|
| Conversion premium: | 15%
|
| Conversion price: | $20.70
|
| Conversion ratio: | 48.3092
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Nov. 15, 2011
|
| Puts: | Nov. 15, 2011; Nov. 15, 2013; Nov. 15, 2016; Nov. 15, 2021
|
| Price talk: | 4.125%-4.625%, up 15%-20%
|
| Pricing date: | Nov. 7 after the close
|
| Settlement date: | Nov. 13
|
| Distribution: | Rule 144A
|
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