By Rebecca Melvin
New York, Feb. 27 - National Retail Properties Inc. sold an upsized $220 million of 20-year convertible senior unsecured notes at par on Wednesday to yield 5.125% with an initial conversion premium of 16%, according to a syndicate source.
The notes priced a little better than the midpoint of price talk, on the rich side. Talk was for a yield of between 4.875% and 5.375% and an initial conversion premium of 13% to 17%.
The offering was increased from a planned $200 million.
Citigroup Global Markets Inc., Banc of America Securities LLC and Wachovia Securities were joint bookrunners.
The real estate investment trust's notes were oversubscribed, and there is a $33 million greenshoe yet to be exercised, the syndicate source said.
The notes are non-callable for five years, with puts in years five, 10 and 15. They also feature contingent conversion, subject to a 130% handle, as well as an acquisition make-whole provision and full dividend protection.
Proceeds are expected to be used to repay borrowings under the company's credit facility, with the remainder to fund acquisitions and for general corporate purposes.
In September 2006, the company priced $150 million of 3.95% senior convertible notes at the cheap end of talk.
Orlando, Fla.-based National Retail is an operator, acquirer and developer of retail properties leased primarily to retail tenants under long-term net leases.
| Issuer: | National Retail Properties Inc.
|
| Issue: | Convertible senior unsecured notes
|
| Amount: | $220 million (increased from $200 million)
|
| Greenshoe: | $33 million
|
| Maturity: | 2028
|
| Coupon: | 5.125%
|
| Price: | Par
|
| Yield: | 5.125%
|
| Conversion premium: | 16%
|
| Conversion price: | $25.42
|
| Conversion ratio: | 39.3459
|
| Call: | Non callable for five years
|
| Puts: | Puts in years five, 10, and 15
|
| Bookrunners: | Citigroup Global Markets, Banc of America Securities LLC and Wachovia Securities
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 4
|
| Price talk: | 4.875% to 5.375%, up 13% to 17%
|
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