American Mortgage downsizes cumulative convertible preferred share offering to $17 million

By Evan Weinberger

New York, July 24 - American Mortgage Acceptance Co. announced Tuesday that it was decreasing its offering of series A cumulative convertible preferred shares to $17 million. The original amount, announced July 9, was $42 million.

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

The preferreds will now be sold as 725,000 million shares with a $25 liquidation preference. The original share amount was 1.68 million. There is a 65,000 share, or $1.6 million, over-allotment option, down from 210,000 shares.

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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