By Stephanie N. Rotondo
Seattle, Aug. 4 – Sutherland Asset Management Corp. priced a $100 million underwritten public offering of 7% $25-par convertible senior notes due 2023 at par with an initial conversion premium of 13% on Friday.
Price talk was for a 6.75% to 7% yield and a 13% conversion premium, according to a market source.
Keefe Bruyette & Woods Inc. and JMP Securities LLC are the joint bookrunners.
There is a $15 million over-allotment option.
The conversion price is $16.67 a share, equal to a 13% premium over Thursday’s closing share price of $14.75. At that price, the notes carry an initial conversion rate of 1.4997 common shares per $25 of notes.
Holders can convert the paper prior to Feb. 15, 2023 in certain circumstances.
The convertibles become callable after Aug. 15, 2021 if the stock hits a 120% price hurdle or upon a fundamental change.
The notes will be listed on the New York Stock Exchange.
Proceeds will be used to originate or acquire additional mortgage loans and mortgage-related assets consistent with its investment strategy and for general corporate purposes.
Sutherland is a New York-based real estate investment trust.
| Issuer: | Sutherland Asset Management Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | Aug. 15, 2023
|
| Bookrunners: | Keefe Bruyette & Woods Inc. and JMP Securities LLC
|
| Co-manager: | Compass Point Research & Trading LLC
|
| Coupon: | 7%
|
| Price: | Par of $25
|
| Yield: | 7%
|
| Conversion premium: | 13%
|
| Conversion price: | $16.67
|
| Conversion rate: | 1.4997 shares
|
| Provisional call: | On or after Aug. 15, 2021 if the stock hits a 120% price hurdle or upon a fundamental change
|
| Contingent conversion: | Prior to Feb. 15, 2023 in certain circumstances
|
| Pricing date: | Aug. 4
|
| Settlement date: | Aug. 9
|
| Expected listing: | NYSE
|
| Cusip: | 86933F602
|
| Talk: | 6.75% to 7% yield, up 13%
|
| Stock symbol: | NYSE: SLD
|
| Stock price: | $14.75 as of Aug. 3 close
|
| Market capitalization: | $487.65 million
|
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