American Mortgage to price $42 million cumulative convertible preferred shares

By Evan Weinberger

New York, July 9 - American Mortgage Acceptance Co. plans to price $42 million shares of series A cumulative convertible preferred shares.

There initial conversion premium was set at 25% but no talk of the expected yield was available at press time.

The preferreds will be sold as 1.68 million shares with a $25 liquidation preference. There is a 210,000 share over-allotment option.

Sterne, Agee & Leach, Inc. is bookrunner for the off-the-shelf sale, with Boenning & Scattergood, Inc. as joint lead.

American Mortgage can force conversion beginning July 2012 subject to a 125% hurdle.

There are no puts or calls.

The shares will trade on the American Stock Exchange under the symbol AMC.PrA.

American Mortgage is a New York-based real estate investment trust. The REIT plans to use the proceeds to acquire additional mortgage-related assets. If there are no assets ready to be acquired, the proceeds will be used to pay down the outstanding balance of a revolving credit facility with Centerline Holding Company, the parent company of American Mortgage's external advisor Centerline/AMAC Manager Inc.

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