By Kenneth Lim
Boston, March 13 - The Macerich Co. priced an upsized $800 million of five-year convertible senior notes within talk on Monday after the market closed. The notes were reoffered at 99 with a coupon of 3.25% and an initial conversion premium of 20%.
The deal was talked at a coupon of 2.875% to 3.375%, an initial conversion premium of 20% and a reoffered price of 99.
The size of the deal was originally $700 million. The over-allotment option was increased to an additional $150 million from an additional $140 million.
Deutsche Bank and JP Morgan were the bookrunners of the Rule 144A offering.
The notes are non-callable and may not be put.
There is a contingent conversion hurdle at 125% of the conversion price.
There is dividend and takeover protection.
The notes have a net share settlement feature.
The notes are 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 that bears an interest rate of Libor plus 150 basis points due 2007 and partly pay down a $1.5 billion revolving loan.
| Issuer: | The Macerich Co.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Deutsche Bank and JP Morgan
|
| Amount: | $800 million
|
| Greenshoe: | $150 million
|
| Maturity: | March 15, 2012
|
| Coupon: | 3.25%
|
| Price: | Par, reoffered at 99
|
| Yield: | 3.25%
|
| Conversion premium: | 20%
|
| Conversion price: | $111.48
|
| Conversion ratio: | 8.9702
|
| Contingent conversion: | 125%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 2.875%-3.375%, up 20%, reoffered at 99
|
| Pricing date: | March 12, after the close
|
| Settlement date: | March 16
|
| Guarantees: | The Macerich Partnership LP
|
| Distribution: | Rule 144A
|
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