Ventas prices $200 million five-year convertibles at 3.875%, up 20%, reoffered at 98.5

Boston, Nov. 27 - Ventas Inc. priced its $200 million offering of five-year convertible senior unsecured notes at a coupon of 3.875% and a 20% initial conversion premium.

The deal, priced after the close Wednesday, came at the cheap end of talk which put the coupon at 3.375% and 3.875% and the initial conversion premium at between 20% and 25%.

Market sources previously said the notes would be reoffered at 98.5, lowered from the original intention to sell them at par.

There is an over-allotment option for a further $30 million.

JP Morgan and Banc of America Securities LLC are the bookrunners of the Rule 144A offering.

The conversion price is $45.07 and the conversion ratio 22.1867.

The convertibles will be non-callable, and there are no puts.

There will be a contingent conversion hurdle at 125% of the conversion price.

There will be a net-share settlement option.

Ventas, a Louisville, Ky.-based health care real estate investment trust, said the proceeds of the deal will be used to repay a revolving loan and for general purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.