By Kenneth Lim
Boston, Sept. 8 - National Retail Properties Inc. on Thursday priced an upsized $150 million of 20-year convertible senior notes at the cheaper end of talk, at a coupon of 3.95% and an initial conversion premium of 15%.
The notes were offered at par and were priced after the market closed. Price talk guided for a coupon of 3.75% to 4% and an initial conversion premium of 15% to 17.5%.
The size of the deal was originally $125 million. The earlier over-allotment option for a further $18.75 million has also been increased to $22.5 million.
Citigroup and Merrill Lynch were the bookrunners of the registered off-the-shelf deal.
The notes are non-callable for the first five years. They may be put in years five, 10 and 15.
There is a contingent conversion hurdle at 130% of the conversion price.
There is dividend and takeover protection.
National Retail, an Orlando, Fla.-based developer of retail properties in the United States, said it plans to use the proceeds of the deal to repay about $202.6 million of revolving debt due 2009 that currently carries an interest rate of Libor plus 80 basis points.
| Issuer: | National Retail Properties Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Citigroup and Merrill Lynch
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | Sept. 15, 2026
|
| Coupon: | 3.95%
|
| Price: | Par
|
| Yield: | 3.95%
|
| Conversion premium: | 15%
|
| Conversion price: | $24.4490
|
| Conversion ratio: | 40.9015
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Sept. 20, 2011
|
| Puts: | Sept. 20, 2011; Sept. 15, 2016; Sept. 15, 2021
|
| Price talk: | 3.75%-4%, up 15%-17.5%
|
| Pricing date: | Sept. 7 after the close
|
| Settlement date: | Sept. 13
|
| Distribution: | Rule 144A
|
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