Weingarten to reoffer $450 mln 20-year convertibles at 98.125-98.375, talked at 3.875%-3.95%, up 25%

By Kenneth Lim

Boston, July 27 - Weingarten Realty Investors plans to reoffer $450 million of 20-year convertible senior unsecured notes at 98.125 to 98.375 with talk for a coupon of 3.875% to 3.95% and an initial conversion premium of 25%.

The overnight deal, which is expected to price before the market opens Friday, will have an initial conversion price of $49.075 per share based on Weingarten's closing stock price of $39.26 on Thursday.

The over-allotment option is for a further $67.5 million.

Citigroup, JP Morgan and Morgan Stanley are the bookrunners of the Rule 144A offering.

The convertibles will be non-callable for the first five years, with puts in years five, 10 and 15.

They will have full dividend and takeover protection.

The convertibles may be settled in cash.

Weingarten is a Houston-based real estate investment trust with a portfolio of shopping centers and industrial properties in the United States. It plans to use the proceeds of the deal to buy back up to $140 million of its common shares, to reduce its debt from a revolving loan and for general purposes.

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