Spirit Realty greenshoe exercise lifts 2.875%, 3.75% convertibles deal to $747.5 million

By Susanna Moon

Chicago, May 20 - Spirit Realty Capital, Inc. underwriters fully exercised the over-allotment options on its 2.875% convertible senior notes due 2019 and its 3.75% convertible senior notes due 2021, according to an 8-K filing with the Securities and Exchange Commission.

This brings the total deal size to $747.5 million, consisting of $402.5 million principal amount of the 2.875% convertibles and $345 million principal amount of the 3.75% convertibles.

As previously announced, Spirit Realty priced $350 million of the 2.875% convertibles and $300 million of the 3.75% convertibles on May 14.

The deal included a $52.5 million greenshoe for its 2.875% convertibles and a $45 million greeshoe for its 3.75% convertibles.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC are the underwriters.

Proceeds will be used to defease about $488.7 million principal amount of senior mortgage debt, to repay the outstanding balance under its revolving credit facility, to fund potential future acquisitions and for general corporate purposes.

Spirit is a self-administered and self-managed real estate investment trust based in Scottsdale, Ariz.

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