By Kenneth Lim
Boston, May 31 - Luminent Mortgage Capital Inc. priced an upsized $90 million offering of 20-year convertible senior unsecured notes within talk on Wednesday to yield 8.125% with an initial conversion premium of 22.5%.
The convertibles were offered at par. The deal was talked at a coupon of 7.875% to 8.375% and an initial conversion premium of 20% to 25%.
The size of the deal was originally $85 million with an over-allotment option for an additional $15 million. The greenshoe is now for a further $20 million.
Bear Stearns is the bookrunner of the Rule 144A offering.
The convertibles are non-callable for the first five years and may be put in years five, 10 and 15.
There is a contingent conversion trigger at 120% of the conversion price.
The convertibles have dividend and takeover protection.
They are guaranteed by Luminent subsidiaries Maia Mortgage Finance Statutory Trust, Mercury Mortgage Finance Statutory Trust and Saturn Portfolio Management Inc.
Luminent, a San Francisco-based real estate investment trust that invests in mortgage-backed securities and loans, said it will use the proceeds of the deal to concurrently buy back up to $25 million of its common stock and fund general purposes.
| Issuer: | Luminent Mortgage Capital Inc.
|
| Issue: | Convertible senior unsecured notes
|
| Bookrunner: | Bear Stearns
|
| Amount: | $90 million
|
| Greenshoe: | $20 million
|
| Maturity: | June 1, 2027
|
| Coupon: | 8.125%
|
| Price: | Par
|
| Yield: | 8.125%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $11.18
|
| Conversion ratio: | 89.4114
|
| Contingent conversion: | 120%
|
| Contingent payment: | None
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before June 5, 2012
|
| Puts: | June 1, 2012; June 1, 2017; June 1, 2022
|
| Price talk: | 7.875%-8.375%, up 20%-25%
|
| Pricing date: | May 30, after the close
|
| Settlement date: | June 5
|
| Guarantees: | Luminent subsidiaries Maia Mortgage Finance Statutory Trust, Mercury Mortgage Finance Statutory Trust and Saturn Portfolio Management Inc.
|
| Distribution: | Rule 144A
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
