Tanger holders tender 95% of 3.75% exchangeables due 2026 in exchange for shares and cash

By Susanna Moon

Chicago, May 8 - Tanger Factory Outlet Centers, Inc. said investors tendered $142.29 million of 3.75% exchangeable senior notes due 2026 issued by Tanger Properties LP in the exchange offer for common shares.

That represents 95.2% of the outstanding $149.5 million principal amount of 3.75% exchangeables.

The offer expired at 5 p.m. ET on May 7. It began on April 9.

Tanger will issue 4.9 million common shares and pay $1.2 million in cash for accrued interest and in lieu of fractional shares.

Following settlement of the exchange offer, $7.21 million principal amount of notes will remain outstanding.

As previously noted, noteholders will receive 27.7434 common shares for each $1,000 principal amount of exchangeable notes tendered, for an exchange price of $36.04 per share, plus $215 paid in the form of additional common shares. The shares issued will be based on the volume-weighted average price of common shares over an eight trading day averaging period beginning April 24 and ending May 5.

Global Bondholder Services Corp. (866 470-4300) was the information agent. Goldman, Sachs & Co. (800 828-3182) was the lead dealer manager. Merrill Lynch & Co. was the co-dealer manager.

Tanger is a Greensboro, N.C.-based real estate investment trust that owns and operates outlet centers.

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