New York, Jan. 13 - Crescent Real Estate Equities Co. priced $74.73 million proceeds of perpetual convertible preferreds to yield 7.80% with a conversion price of $40.86.
Crescent stock closed at $17.48 on Friday, when the deal priced.
The deal is an add-on to Crescent's 10.8 million ($270 million) of series A preferreds currently outstanding. They were issued at various times since February 1998.
Bear, Stearns & Co. was bookrunner for the off-the-shelf deal. The syndicate also included BB&T Capital Markets and Stifel, Nicolaus & Co. Inc.
The Fort Worth, Texas, office real estate investment trust said it will use proceeds to repay bank debt or to repay other debt, for acquisitions and for general business purposes.
| Issuer: | Crescent Real Estate Equities Co.
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| Issue: | Series A convertible cumulative preferred shares
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| Amount: | $85 million principal, $74.732 million proceeds (3.4 million shares)
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| Maturity: | Perpetual
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| Dividend: | 6¾%, payable quarterly starting Feb. 16, accruing from Nov. 16
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| Price: | $21.98 versus par of $25
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| Yield: | 7.80%
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| Conversion price: | $40.86
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| Conversion ratio: | 0.6119
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| Call: | At any time at par
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| Ratings: | Moody's: B2
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| S&P: B
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| Pricing date: | Jan. 9
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| Settlement date: | Jan. 15
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| Bookrunner: | Bear, Stearns & Co.
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| Listing: | "CEI Pr A" on New York Stock Exchange
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| Distribution: | Off shelf
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