Sunrise Senior Living to sell $75 million 30-year convertibles to yield 4.75%-5.25%, up 18%-23%

By Rebecca Melvin

New York, April 14 - Sunrise Senior Living Inc. plans to price $75 million of 30-year junior subordinated convertible notes after the market close Thursday that were talked to yield 4.75% to 5.25% with an initial conversion premium of 18% to 23%, according to a syndicate source.

Stifel Nicolaus & Co. Inc. is the bookrunner of the Rule 144A offering, with KeyBanc Capital Markets LLC as a co-manager.

There is a greenshoe of $11.25 million.

The notes are non-callable with no puts.

The notes are freely convertible until April 6, 2016, and then Sunrise may terminate conversion rights if shares are equal to or exceed 130% of conversion for at least 20 out of 30 consecutive trading days.

There is dividend and takeover protection.

Proceeds will be used for general corporate purposes, including paying down joint-venture debt and funding the acquisition of joint ventures.

Sunrise is a provider of senior living services and is based in McLean, Va.

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