Western Asset offering $100 million convertible notes due 2022 at 6.25%-6.75% yield, up 10%-15%

By Stephanie N. Rotondo

Seattle, Sept. 27 – Western Asset Mortgage Capital Corp. intends to price a $100 million offering of convertible senior notes due Oct. 1, 2022, the company said in a press release on Wednesday.

Price talk is for a 6.25% to 6.75% yield with an initial conversion premium of 10% to 15%, a market source reported.

The deal is expected to price ahead of Thursday’s open.

JMP Securities is the bookrunner.

There is a $15 million over-allotment option.

Conversions will be settled in cash, common stock, or both, at the company’s option. The notes are contingently convertible prior to July 1, 2022.

The company can redeem the issue on or after July 1, 2022.

Proceeds will be used to acquire agency CMBS, residential whole and bridge loans, mezzanine commercial loans and non-agency RMBS representing interests in pools of reperforming loans.

Western Asset is a Pasadena, Calif.-based real estate investment trust.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.