UDR to redeem all 4% convertibles due 2035; conversion an option

By Toni Weeks

San Diego, March 2 - UDR, Inc. will fully redeem its roughly $156.9 million of 4% convertible senior notes due 2035, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The redemption will occur on April 4 at a redemption price of par plus accrued interest.

Holders of the notes have the right to convert their notes at a conversion rate of 38.7123 shares of common stock per $1,000 principal amount of notes, equivalent to a conversion price of about $25.83 per share. UDR's closing share price on March 1 was $23.68 (NYSE: UDR). Based on the current conversion rate, the $156.9 million principal amount of the notes are convertible into about 6.1 million shares of UDR common stock.

The deadline for conversion is 5 p.m. ET on March 31.

U.S. Bank NA is the trustee, paying agent and conversion agent (attn: Amanda C. Nichols at 804 771-7932).

The equity real estate investment trust is based in Highlands Ranch, Colo.

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