By Kenneth Lim
Boston, May 3 - Pennsylvania Real Estate Investment Trust priced $250 million of five-year exchangeable senior notes at the cheap end of talk Wednesday at a reoffered price of 98.5 with a coupon of 4% and an initial exchange premium of 20%.
The exchangeables were talked at a reoffered price of 98.5 to 98.75 with a coupon of 4% and an initial exchange premium of 20%. The exchangeables are issued by Pennsylvania's operating partnership, PREIT Associates LP, and exchangeable into Pennsylvania common stock.
There is an over-allotment option for an additional $37.5 million.
Merrill Lynch, Citigroup and UBS Investment Bank were the bookrunners of the Rule 144A offering.
The exchangeables are non-callable and may not be put.
There is a contingent exchange trigger at 130% of the exchange price.
The exchangeables have dividend and takeover protection.
There were concurrent capped call transactions that effectively increase the exchange price of the notes to a 40% premium over the common stock's closing price on Wednesday.
Pennsylvania Real Estate, a Philadelphia-based real estate investment trust with a portfolio of mall and power and strip centers, said it will use the proceeds of the deal to fund capped call transactions, to repay part of a credit facility and for general purposes.
| Issuer: | PREIT Associates LP
|
| Issue: | Exchangeable senior notes
|
| Exchange property: | Pennsylvania Real Estate Investment Trust common stock
|
| Bookrunners: | Merrill Lynch, Citigroup and UBS Investment Bank
|
| Amount: | $250 million
|
| Greenshoe: | $37.5 million
|
| Maturity: | June 1, 2012
|
| Coupon: | 4%
|
| Price: | Par, reoffered at 98.5
|
| Yield: | 4%
|
| Exchange premium: | 20%
|
| Exchange price: | $54.64
|
| Exchange ratio: | 18.303
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 4%, up 20%, reoffered at 98.5-98.75
|
| Pricing date: | May 2, after the close
|
| Settlement date: | May 8
|
| Guarantees: | Pennsylvania Real Estate Investment Trust
|
| Distribution: | Rule 144A
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
