Tanger to price $100 million 20-year exchangeables Thursday, talked at 3.45%-3.95%, up 17.5%-22.5%

By Kenneth Lim

Boston, Aug. 9 - Tanger Factory Outlet Centers Inc. plans to price $100 million of 20-year exchangeable senior notes on Thursday after the market closes, with talk for a coupon of 3.45% to 3.95% and an initial conversion premium of 17.5% to 22.5%.

The convertibles are offered at par. Tanger will guarantee the notes, which will be issued by Tanger subsidiary Tanger Properties LP.

There is a greenshoe for a further $15 million.

Citigroup and Banc of America Securities are the bookrunners for the registered off-the-shelf offering.

The notes will be non-callable for the first five years, with the first put in the fifth year.

The notes have full dividend and takeover protection.

Tanger, a Greensboro, N.C.-based real estate investment trust that owns 29 factory outlet retail malls in the United States, said it will use the proceeds of the deal to pay down its revolving loans and other debt, to make additional investments and for general purposes.

Tanger shares closed at $32.08 on Wednesday, down by 0.34% or 11 cents, before the deal was announced.

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