Starwood Waypoint plans $150 million five-year convertibles to yield 2.5%-3%, up 27.5%-32.5%

By Rebecca Melvin

New York, June 30 – Starwood Waypoint Residential Trust plans to price $150 million of five-year convertible senior notes after the market close on Monday that were talked to yield 2.5% to 3%, with an initial conversion premium of 27.5% to 32.5%, according to a syndicate source.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and BofA Merrill Lynch are joint bookrunners for the Rule 144A deal.

There is a $22.5 million greenshoe.

The notes are non-callable with no puts and with standard takeover protection.

Proceeds are expected to be used to acquire additional homes and distressed and non-performing residential mortgage loans, to repurchase common shares and for general business purposes.

Oakland, Calif.-based Starwood is a REIT that acquires, renovates, leases, maintains and managers single-family homes.

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