By Stephanie N. Rotondo
Seattle, Sept. 28 – Western Asset Mortgage Capital Corp. priced $100 million of convertible senior notes due Oct. 1, 2022 at par to yield 6.75% on Thursday, the company said in an FWP filed with the Securities and Exchange Commission.
The issue carries an initial conversion premium of 10%.
The yield printed at the cheap end of the 6.25% to 6.75% yield talk, as well as the cheap end of the 10% to 15% premium talk.
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 initial conversion rate is 83.1947 shares per each $1,000 of notes, equal to an initial conversion price of $12.02 a share.
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.
| Issuer: | Western Asset Mortgage Capital Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | Oct. 1, 2022
|
| Bookrunner: | JMP Securities
|
| Coupon: | 6.75%
|
| Price: | Par of $1,000
|
| Yield: | 6.75%
|
| Initial conversion premium: | 10%
|
| Initial conversion price: | $12.02 a share
|
| Initial conversion rate: | 83.1947 shares
|
| Call options: | On or after July 1, 2022
|
| Contingent conversion: | Yes, prior to July 1, 2022
|
| Net share settlement: | Yes
|
| Pricing date: | Sept. 28
|
| Settlement date: | Oct. 2
|
| Stock symbol: | NYSE: WMC
|
| Stock reference price: | $10.93 as of Sept. 27 close
|
| Market capitalization: | $450.01 million
|
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