Apollo Commercial Real Estate offers $100 million five-year convertibles at 5.75%-6.25%, up 10%-15%

By Rebecca Melvin

New York, March 10 - Apollo Commercial Real Estate Finance Inc. launched an offering of $100 million of five-year convertible senior notes after the market close Monday that was seen pricing after the market close Tuesday, according to a syndicate source.

Price talk on the registered deal was for a 5.75% to 6.25% coupon and a 10% to 15% initial conversion premium.

There is a $15 million greenshoe for the offering, which was being sold via joint bookrunners J.P. Morgan Securities LLC, BofA Merrill Lynch and Citigroup Global Markets Inc.

The notes are non-callable with no puts.

Proceeds will be used to repay amounts outstanding under the company's repurchase facility with JPMorgan Chase Bank NA, for acquisition of target assets including commercial first mortgage loans, subordinate financings, commercial mortgage-backed securities and other commercial real estate-related debt investments and for general corporate purposes.

Apollo is a New York-based real estate investment trust that primarily originates, invests in, acquires and manages performing commercial real estate-related debt instruments.

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