By Rebecca Melvin
New York, Jan. 7 – Resource Capital Corp. priced $100 million of five-year convertible senior notes after the market close Wednesday with an 8% coupon and a 10% initial conversion premium, according to a news release.
Pricing of the registered deal came beyond the cheap end of the range of initial talk for the coupon, which was 7% to 7.5%, and at the cheap end of initial conversion premium talk of 10% to 15%.
The deal has a $15 million greenshoe and was sold via joint bookrunning managers Morgan Stanley & Co. LLC and J.P. Morgan Securities 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 for working capital.
The New York-based specialty finance company focuses primarily on commercial real estate loans.
| Issuer: | Resource Capital Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | Jan. 15, 2020
|
| Bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC
|
| Co-managers: | Keefe Bruyette & Woods Inc., JMP Securities LLC, MLV & Co LLC
|
| Coupon: | 8%
|
| Yield: | 8%
|
| Conversion premium: | 10%
|
| Conversion price: | $5.34 per share
|
| Conversion ratio: | 187.4414 shares
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes, for dividends of 16 cents or more
|
| Calls: | Non-callable
|
| Pricing date: | Jan. 7
|
| Settlement date: | Jan. 13
|
| Distribution: | Registered
|
| Price talk: | 7%-7.5%, up 10%-15%
|
| Stock symbol: | NYSE: RSO
|
| Stock price: | $4.85 at close Jan. 7
|
| Market capitalization: | $633.72 million
|
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