Starwood Waypoint greenshoe lifts 3% convertibles to $230 million

By Marisa Wong

Madison, Wis., July 8 – Underwriters for Starwood Waypoint Residential Trust’s 3% convertible senior notes due 2019 exercised the $30 million over-allotment option on Monday, lifting the total size of the deal to $230 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced the five-year convertible notes with an initial conversion premium of 27.5% on June 30.

The originally planned $150 million issue was talked to yield 2.5% to 3% with an initial conversion premium of 27.5% to 32.5%, as previously reported.

The size of the greenshoe was initially set at $22.5 million.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and BofA Merrill Lynch are joint bookrunners for the Rule 144A deal.

The notes are non-callable with no puts and have standard takeover protection.

Proceeds are expected to be used to acquire additional homes and distressed and non-performing residential mortgage loans, to repurchase common shares and for general business purposes.

Oakland, Calif.-based Starwood is a REIT that acquires, renovates, leases, maintains and manages single-family homes.

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