Avatar Holdings plans $100 million offering of five-year convertibles

By Rebecca Melvin

New York, Jan. 31 - Avatar Holdings Inc. launched a $100 million offering of five-year convertible senior notes, but proposed terms or timing were not immediately available, market sources said.

The registered offering is being sold via Barclays Capital Inc. as the bookrunner.

Proceeds will be used to repay debt, including Avatar's 4.5% convertible senior notes, and to fund potential new acquisitions of real estate and real estate-related assets.

Holders can put the notes at par plus interest upon a fundamental change or after three years, on Feb. 15, 2014. Fifty percent of the notes can be put upon a breach of certain financial covenants at 110% of par and unpaid interest.

Avatar is a Coral Gables, Fla., real estate development company with operations in Florida and Arizona.

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