General Growth prices $1.55 billion 20-year exchangeables at 3.98%, up 35%

By Kenneth Lim

Boston, April 10 - General Growth Properties Inc. on Tuesday priced $1.55 billion of 20-year exchangeable senior notes to yield 3.98% with an initial exchange premium of 35%.

The notes were issued by General Growth operating partnership GGP LP and are exchangeable into General Growth common stock.

There is an over-allotment option for a further $200 million.

Citigroup was the bookrunner of the Rule 144A offering.

The initial exchange rate was set at 11.27 shares per note, or an initial exchange price of $88.72 per share.

General Growth, a Chicago-based real estate investment trust that focuses on shopping centers and community development projects, said the proceeds of the deal will be used to repay outstanding debt that currently bears an interest rate of 6.57% and to fund general corporate purposes.

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