Invesco Mortgage plans $250 million five-year convertibles to yield 5%-5.5%, up 10%-15%

By Rebecca Melvin

New York, March 5 - IAS Operating Partnership LP, an operating partnership with Invesco Mortgage Capital Inc., launched a $250 million offering of five-year convertible bonds that was seen pricing after the market close Wednesday and was talked to yield 5% to 5.5% with an initial conversion premium of 10% to 15%, according to market sources.

The Rule 144A offering is being sold via joint bookrunners Credit Suisse Securities (USA) Inc., Citigroup Global Markets Inc. and BofA Merrill Lynch.

There is a $37.5 million over-allotment option.

The notes are non-callable for five years. There is change-of-control and dividend protection and net share settlement.

Proceeds will be used to purchase the company's target assets subject to the company's investment guidelines as a real estate investment trust, and for other general corporate purposes.

Based in Atlanta, Invesco invests in residential and commercial mortgage-backed securities and mortgage loans.

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