Sutherland Asset’s 7% $25-par notes due 2023 begin trading on NYSE

By Stephanie N. Rotondo

Seattle, Aug. 11 – Sutherland Asset Management Corp.’s $115 million of 7% $25-par convertible senior notes due 2023 were admitted to the New York Stock Exchange on Friday.

The ticker symbol is “SLDA.”

The issuer priced $100 million of the notes on Aug. 4 with an initial conversion premium of 13%. On Aug. 9, the company said its $15 million over-allotment option had been exercised, bringing the total amount outstanding to $115 million.

Price talk was for a 6.75% to 7% yield and a 13% conversion premium.

Keefe Bruyette & Woods Inc. and JMP Securities LLC are the joint bookrunners.

The conversion price is $16.67 a share, equal to a 13% premium over the Aug. 3 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.

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.

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