New Issue: Lexington sells upsized $135 million convertible at 6.5% dividend, up 20%

Nashville, Dec. 3 - Lexington Corporate Properties Trust sold an upsized $135 million convertible perpetual trust preferreds at par of 50 with a dividend of 6.5% and 20% initial conversion premium via lead manager Bear Stearns & Co. Inc.

The registered deal, upped from $125 million, priced at the middle of guidance for a dividend of 6.25% to 6.75% and 17.5% to 22.5% initial conversion premium.

Lexington, a New York City-based real estate investment trust, said it planned to use proceeds to fund future acquisitions and for general corporate purposes.

Terms of the deal are:

Issuer:	Lexington Corporate Properties Trust
Issue:	Convertible perpetual trust preferreds
Bookrunner:	Bears Stearns & Co.
Amount:	$135 million, up from $125 million
Greenshoe:	$20 million, upped from $18.75 million
Maturity:	Perpetual
Dividend:	6.5%
Price:	Par, $50
Yield:	6.5%
Conversion premium:	20%
Conversion price:	$26.82
Conversion ratio:	1.8643
Contingent conversion:	No
Contingent payment:	No
Dividend protection:	Yes
Takeover protection:	Yes
Call:	Non-callable for 5 years with 125% hurdle
Price talk:	6.25-6.75%, up 17.5-22.5%
Pricing date:	Dec. 2, after the close
Settlement date:	Dec. 8
Distribution:	Registered

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