By Abigail W. Adams
Portland, Me., Sept. 10 – Western Asset Mortgage Capital Corp. priced a $75 million offering of three-year convertible notes prior to the market open on Friday at par with a coupon of 6.75% and an initial conversion premium of 10%, according to a company news release.
Pricing came in line with talk for a fixed coupon of 6.75% and a fixed initial conversion premium of 10%, according to a market source.
JMP Securities LLC was underwriter for the registered offering, which carries a greenshoe of $11.25 million.
The notes are non-callable until June 15, 2024.
They are putable upon a fundamental change.
Concurrently, the company plans to repurchase $100.3 million of its outstanding 6.75% convertible notes due 2022.
Proceeds, together with $25 million in cash, will be used to fund the repurchase of the 6.75% notes with remaining proceeds to be used for general corporate purposes.
Western Asset Mortgage Capital is a Pasadena, Calif.-based real estate investment trust.
| Issuer: | Western Asset Mortgage Capital Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $75 million
|
| Greenshoe: | $11.25 million
|
| Maturity: | Sept. 15, 2024
|
| Bookrunner: | JMP Securities LLC
|
| Coupon: | 6.75%
|
| Price: | Par
|
| Yield: | 6.75%
|
| Conversion premium: | 10%
|
| Conversion price: | $2.96
|
| Conversion rate: | 337.9520
|
| Call options: | Non-callable until June 15, 2024
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Sept. 10
|
| Settlement date: | Sept. 14
|
| Distribution: | SEC registered
|
| Talk: | Fixed coupon of 6.75% and fixed initial conversion premium of 10%
|
| Stock symbol: | NYSE: WMC
|
| Stock price: | $2.69 at market close Sept. 9
|
| Market capitalization: | $154.77 million
|
| Cusip: | 95790DAD7
|
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