By Rebecca Melvin and Jennifer Chiou
New York, June 30 – Starwood Waypoint Residential Trust announced the pricing of an upsized $200 million of five-year convertible senior notes with a 3% coupon and an initial conversion premium of 27.5%.
The originally planned $150 million issue was 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 $30 million, augmented from the initial $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.
| Issuer: | Starwood Waypoint Residential Trust
|
| Issue: | Convertible senior notes
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | July 1, 2019
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and BofA Merrill Lynch
|
| Coupon: | 3%
|
| Conversion premium: | 27.5%
|
| Conversion ratio: | 29.9242
|
| Conversion price: | $33.42
|
| Price talk: | 2.5% to 3%, up 27.5% to 32.5%
|
| Pricing date: | June 30
|
| Settlement date: | July 7
|
| Stock symbol: | NYSE: SWAY
|
| Stock price: | $26.21 at close June 30
|
| Market capitalization: | $1.03 billion
|
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