Lexington greenshoe fully exercised, upping convertibles to $300 million

By Laura Lutz

Washington, Feb. 7 - Lexington Realty Trust announced the full exercise of a $50 million greenshoe in its previously announced private placement of 5.45% exchangeable senior notes, brining the total deal size to $300 million.

The 20-year notes were reoffered at 99.375 and carried an initial conversion premium of 20%.

The notes were issued by Lexington subsidiary Lexington Master LP and guaranteed by the listed entity. Lehman Brothers and Bear Stearns were the bookrunners.

The offering priced on Jan. 23.

The notes are non-callable for the first five years and may be put in years five, 10 and 15.

There is a contingent exchange hurdle at 125% of the exchange price.

Lexington, a New York-based real estate investment trust that focuses on non-residential properties, said the proceeds of the offering will be used to repay a secured credit facility that bears interest at Libor plus 175 basis points and matures August 2008. There was $549.1 million outstanding under that credit facility as of Sept. 30.

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