Resource Capital to sell $100 million five-year convertibles to yield 7%-7.5%, up 10%-15%

By Rebecca Melvin

New York, Jan. 6 – Resource Capital Corp. plans to price $100 million of five-year convertible senior notes after the market close Wednesday that were talked to yield 7% to 7.5% with an initial conversion premium of 10% to 15%, according to a syndicate source.

The registered deal has a $15 million greenshoe and was being sold via joint bookrunning managers Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC.

Co-managers of the deal are Keefe Bruyette & Woods Inc., JMP Securities LLC and MLV & Co LLC.

The notes are non-callable for life with no puts. There is takeover protection and dividend protection for dividends of 16 cents or more.

Proceeds will be used for general corporate purposes, including acquisition of investments, loan originations and working capital.

The New York-based specialty finance company focuses primarily on commercial real estate loans.

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