By Angela McDaniels
Seattle, July 25 - American Mortgage Acceptance Co. priced a downsized $17 million of 7.25% series A cumulative convertible perpetual preferred shares with an initial conversion premium of 25%, according to a 424B5 filing with the Securities and Exchange Commission.
The company priced 680,000 shares, each with a $25 liquidation preference. There is a 60,000 share over-allotment option.
The deal was reduced from the original announcement on July 9, when the company said it planned to price 1.68 million shares with a greenshoe for 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 27, 2012 subject to a 125% hurdle.
There are no puts or calls.
The company applied to list the shares on the American Stock Exchange under the symbol "AMC.PrA."
Proceeds will be used by the New York-based real estate investment trust to acquire additional mortgage-related assets and for general corporate purposes.
| Issuer: | American Mortgage Acceptance Co.
|
| Issue: | Series A cumulative convertible preferred shares
|
| Amount: | $17 million
|
| Greenshoe: | $1.5 million
|
| Maturity: | Perpetual
|
| Coupon: | 7.25%, payable quarterly
|
| Price: | $25
|
| Conversion premium: | 25%
|
| Conversion ratio: | 2.2701
|
| Conversion price: | $11.0125
|
| Call: | Forced conversion starting July 27, 2012, subject to 125% hurdle
|
| Pricing date: | July 24
|
| Settlement date: | July 27
|
| Underwriters: | Sterne, Agee & Leach, Inc. (books) and Boenning & Scattergood, Inc.
|
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