Macerich to price $700 million five-year convertibles talked at 2.875%-3.375%, up 20%, reoffered at 99

By Kenneth Lim

Boston, March 12 - The Macerich Co. planned to price $700 million of five-year convertible senior notes on Monday after the market closed, talked at a coupon of 2.875% to 3.375%, an initial conversion premium of 20% and a reoffer price of 99.

There is an over-allotment option for a further $140 million.

Deutsche Bank and JP Morgan are the bookrunners of the Rule 144A offering.

The notes will be non-callable and may not be put.

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

There will be dividend and takeover protection.

There will be net share settlement.

The notes will be guaranteed by Macerich's operating partnership, The Macerich Partnership LP.

Macerich is a Santa Monica, Calif.-based real estate investment trust that focuses on regional and community shopping centers. It will use the proceeds of the deal to repay an existing $250 million term loan due 2007 that bears an interest rate of Libor plus 150 basis points and to partly pay down a $1.5 billion revolving loan.

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