Alexandria Real Estate wraps exchange offer for its 8% convertibles

By Susanna Moon

Chicago, June 14 - Alexandria Real Estate Equities Inc. said it completed the exchange offer for its $240 million of 8% senior convertible notes due 2029 at 11:59 p.m. ET on June 11.

As of the expiration date, investors had tendered $232,679,000 principal amount, or 96.95%, of the outstanding notes.

As a result, Alexandria will issue 5.6 million common shares and pay $41.9 million in cash for the tendered convertibles.

Following settlement, $7,321,000 principal amount of the notes will remain outstanding.

As previously noted, the company registered up to $399.45 million of its common stock, or 5,797,104 of its shares at a proposed maximum offering price of $68.91 apiece, in an S-4 filing with the Securities and Exchange Commission. The figures represented the shares that could be issued in the exchange.

For each $1,000 principal amount, the company offered 24.1546 of its shares, a cash payment of $180 and accrued interest to the settlement date.

There was no minimum tender condition.

Bank of America Merrill Lynch (980 388-9217 or call collect 888 292-0070), Citi (877 531-8365) and J.P. Morgan (800 261-5767) are the joint dealer managers. D.F. King & Co., Inc. is the information and exchange agent (212 269-5550 or 800 431-9633).

Pasadena, Calif.-based Alexandria is a real estate investment trust that focuses on offices and laboratories that are leased to research entities and government agencies. Its shares closed at $69.76 per share on May 10.

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