By Kenneth Lim
Boston, Nov. 28 - Ventas Inc. on Monday priced $200 million of five-year convertible senior unsecured notes at a coupon of 3.875% and an initial conversion premium of 20%, and reoffered at 98.5.
The convertibles were talked at a coupon of 3.375% to 3.875% and an initial conversion premium of 20% to 25%.
There is an over-allotment option for a further $30 million.
JP Morgan and Banc of America Securities LLC were the bookrunners of the Rule 144A offering.
The convertibles are non-callable, and there are no puts.
There will be a contingent conversion hurdle at 125% of the conversion price.
The convertibles have dividend and takeover protection.
There will be a net-share settlement option.
The notes will be guaranteed on a senior unsecured basis by Ventas Realty LP and other subsidiaries of Ventas.
Ventas, a Louisville, Ky.-based health care real estate investment trust, said the proceeds of the deal will be used to repay a revolving loan and for general purposes.
| Issuer: | Ventas Inc.
|
| Issue: | Convertible senior unsecured notes
|
| Bookrunners: | JP Morgan and Banc of America Securities LLC
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | Nov. 15, 2011
|
| Coupon: | 3.875%
|
| Price: | Par, reoffered at 98.5
|
| Yield: | 3.875%
|
| Conversion premium: | 20%
|
| Conversion price: | $45.07
|
| Conversion ratio: | 22.1867
|
| Contingent conversion: | 125%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 3.375%-3.875%, up 20%-25%, reoffered at 98.5
|
| Pricing date: | Nov. 27, after the close
|
| Settlement date: | Dec. 1
|
| Guarantees: | Ventas Realty LP
|
| Distribution: | Rule 144A
|
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