Sizeler says $28 million convertibles tendered in exchange

New York, May 1 - Sizeler Property Investors, Inc. said it completed its exchange offer for its outstanding 8% convertible subordinated debentures due July 15, 2003 with $28.067 million of the securities being tendered.

The New Orleans, La. real estate investment trust had been offering holders of the current convertibles either new 9% convertible subordinated debentures due July 15, 2009 or 9.75% series B cumulative redeemable preferred stock with a liquidation preference of $25 per share or a combination of the two securities. However it will not issue more than $40.34 million of the new convertibles.

The new convertible debentures will have a conversion price of $11.00 per share, lower than the $13.00 per share of the existing convertibles.

Holders will receive the same principal amount (or liquidation preference) in the exchange as the principal amount of securities they currently hold.

Sizeler said it is carrying out the exchange to refinance the old convertibles.

In addition to the exchange, Sizeler is also offering the new convertible debentures and series B preferred stock for cash. It will only sell new securities for cash to the extent that holders of the existing convertibles do not participate in the exchange; the total principal amount of the new convertibles and preferreds will not exceed $61.9 million, with priority given to existing convertible holders to take the new securities.

The offer expired at 5.00 p.m. ET on May 1.

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