By Kenneth Lim
Boston, Sept. 13 - New Plan Excel Realty Trust Inc. on Wednesday priced $175 million of 20-year convertible senior unsecured notes within talk, at a reoffer price of 99, a coupon of 3.7% and an initial conversion premium of 22%.
The deal was talked at a reoffered price between 99 and 99.25, and at a coupon of 3.7% with an initial conversion premium between 20% and 22%.
There is an over-allotment option for a further $25 million.
Merrill Lynch and Bank of America were the bookrunners of the Rule 144A offering.
The notes have an initial conversion rate of 30.5506 shares per note, or an initial conversion price of $32.73.
The convertibles are non-callable for the first five years, with puts in years five, 10 and 15.
They have dividend and takeover protection.
New Plan, a New York-based 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.
| Issuer: | New Plan Excel Realty Trust Inc.
|
| Issue: | Convertible senior unsecured notes
|
| Bookrunner: | Merrill Lynch and Bank of America
|
| Amount: | $175 million
|
| Greenshoe: | $25 million
|
| Maturity: | Sept. 15, 2026
|
| Coupon: | 3.7%
|
| Price: | Par, reoffered at 99
|
| Yield: | 3.7%
|
| Conversion premium: | 22%
|
| Conversion price: | $32.73
|
| Conversion ratio: | 30.5506
|
| 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: | 3.7%, up 20%-22%, reoffered at 99-99.25
|
| Pricing date: | Sept. 13 after the close
|
| Settlement date: | Sept. 19
|
| Distribution: | Rule 144A
|
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