CommonWealth REIT holders may convert 6.5% convertible preferreds

By Susanna Moon

Chicago, April 9 - CommonWealth REIT said holders may convert their 6.5% series D cumulative convertible preferred shares until the close of business on May 14.

The notes are convertible because of a fundamental change that occurred, effective March 25.

The preferreds are convertible into a number of common shares per $25.00 liquidation preference equal to $25.00 plus accrued dividends to but excluding the fundamental change conversion date divided by 98% of the market price of common shares, according to a company press release.

The market price is calculated as the average of the closing sale prices of the shares for the five consecutive trading days ending on the third trading day prior to the fundamental change conversion date. The market price will be at least $0.01.

Due to restrictions under its term loan and revolving credit facility agreements, the company said it has not exercised its repurchase right for any of the series D preferreds.

The transfer and conversion agent is Wells Fargo Shareowner Services (800 468-9716).

CommonWealth is a real estate investment trust that owns office properties. It is based in Newton, Mass.

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