By Devika Patel
Knoxville, Tenn., May 4 - Grubb & Ellis Co. arranged to sell $30 million of 7.95% convertible senior notes due 2015 on May 3, according to an 8-K filed Tuesday with the Securities and Exchange Commission. There is a $4.5 million greenshoe.
The notes are convertible into common stock at an initial conversion rate of 445.583 common shares per $1,000 of notes, which is equal to an initial conversion price of approximately $2.24 per share, representing a 17.5% premium. The company may redeem the notes at par plus interest after May 6, 2013.
JMP Securities LLC is the underwriter for the Rule 144A offering.
Settlement is expected May 7.
Proceeds will be used for growth initiatives, short-term working capital and general corporate purposes.
Grubb & Ellis is a Santa Ana, Calif.-based real estate services and investment firm.
| Issuer: | Grubb & Ellis Co.
|
| Issue: | Convertible senior notes
|
| Amount: | $30 million
|
| Greenshoe: | $4.5 million
|
| Maturity: | 2015
|
| Coupon: | 7.95%
|
| Price: | Par
|
| Yield: | 7.95%
|
| Conversion price: | $2.24 (approximate)
|
| Conversion ratio: | 445.583
|
| Conversion premium: | 17.5%
|
| Call: | After May 6. 2013
|
| Warrants: | No
|
| Underwriter: | JMP Securities LLC
|
| Pricing date: | May 3
|
| Settlement date: | May 7
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: GBE
|
| Stock price: | $1.91 at close May 3
|
| Market capitalization: | $118 million
|
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