New Issue: Tarragon sells $12 million add-on to 8%, up 35% convertible due 2009

Nashville, Nov. 16 - Tarragon Corp. announced the sale of a $12 million add-on to its five-year senior unsecured convertible notes at 101.5. The $50 million issue, including the exercise of a greenshoe, originally was priced in September at par to yield 8% with a 35% initial conversion premium.

Lazard Freres & Co. LLC was sole bookrunner for the Rule 144A deal.

The New York-based real estate investment firm said proceeds will be used to repay debt and for general corporate purposes, including acquisitions and investments in joint ventures.

Terms of the deal are:

Issuer:	Tarragon Corp.
Issue:	Convertible senior unsecured bonds
Bookrunner:	Lazard Freres & Co. LLC
Amount:	$12 million
Maturity:	Sept. 16, 2009
Coupon:	8%
Price:	101.5
Conversion price:	$18.36
Conversion ratio:	54.4662
Call:	Non-callable for 3 years, then with 150% hurdle
Trade date:	Nov. 15, after the close
Settlement date:	Nov. 19
Distribution:	Rule 144A

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