Invesco Mortgage greenshoe lifts 5% convertibles deal to $400 million

By Susanna Moon

Chicago, March 15 - IAS Operating Partnership LP, an operating partnership with Invesco Mortgage Capital Inc., said underwriters fully exercised their $50 million over-allotment option on its issue of five-year convertible bonds on Friday, bringing the total issue size to $400 million.

The company priced an upsized $350 million of the convertibles after the market close on March 6 to yield 5% with an initial conversion premium of 15%.

As noted before, the deal size was initially expected to be $250 million, and the greenshoe was upsized from $37.5 million.

Pricing came at the rich end of talked terms, which was for a coupon of 5% to 5.5% and a premium of 10% to 15%.

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

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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