By Kenneth Lim
Boston, April 11 - General Growth Properties Inc. on Wednesday priced $1.55 billion of 20-year exchangeable senior notes cheaper than talk, at a reoffered price of 98 with a yield 3.98% and an initial exchange premium of 35%.
The overnight deal was talked at a reoffered price of 98.5 to 98.75 with the same coupon and initial exchange premium.
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 notes are non-callable for the first five years and may be put in years five, 10 and 15.
There is a contingent exchange trigger at 130% of the exchange price.
The notes have dividend and takeover protection.
There is a net-share settlement option.
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.
| Issuer: | GGP LP
|
| Issue: | Exchangeable senior notes
|
| Exchange property: | General Growth Properties Inc. common stock
|
| Bookrunner: | Citigroup
|
| Amount: | $1.55 billion
|
| Greenshoe: | $200 million
|
| Maturity: | April 15, 2027
|
| Coupon: | 3.98%
|
| Price: | Par, reoffered at 98
|
| Yield: | 3.98%
|
| Exchange premium: | 35%
|
| Exchange price: | $88.72
|
| Exchange ratio: | 11.27
|
| Contingent exchange: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before April 15, 2012
|
| Puts: | April 15, 2012; April 15, 2017; April 15, 2022
|
| Price talk: | 3.98%, up 35%, reoffered at 98.5-98.75
|
| Pricing date: | April 11, before the open
|
| Settlement date: | April 16
|
| Distribution: | Rule 144A
|
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