New Plan Excel to price $175 million 20-year convertibles Wednesday, talked at 3.7%, up 20%-22%

By Kenneth Lim

Boston, Sept. 12 - New Plan Excel Realty Trust Inc. plans to price $175 million of 20-year convertible senior unsecured notes on Wednesday talked at a coupon of 3.7% and an initial conversion premium of 20% to 22%.

The notes are being offered at par.

There is an over-allotment option for a further $25 million.

Merrill Lynch and Bank of America are the bookrunners of the Rule 144A offering.

The convertibles will be non-callable for the first five years, with puts in years five, 10 and 15.

They will have dividend and takeover protection.

New Plan, a real estate investment trust focusing on community and neighborhood shopping centers in the United States, said it will concurrently buy back $50 million of its common stock with the proceeds of the deal. It will also repay a $350 million revolving credit line and fund general corporate purposes.

New Plan stock closed at $27.07 on Tuesday, gaining 1.27% or 34 cents before the deal was announced.

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