New York, Oct. 6 – Starwood Waypoint Residential Trust priced $150 million of three-year convertible senior notes after the market close Tuesday to yield 4.5% with a 20% initial conversion premium, according to a company announcement.
The deal came at the cheap end of talk for a yield of 4% to 4.5% and a conversion premium of 20% to 25%.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and BofA Merrill Lynch were the joint bookrunners for the Rule 144A offering.
There is a $22.5 million greenshoe.
The conversion price is $30.04. The notes are contingently convertible and have net share settlement.
Proceeds are expected to be used to acquire additional homes and distressed and non-performing residential mortgage loans, to repurchase common shares and for general business purposes.
Oakland, Calif.-based Starwood is a REIT that acquires, renovates, leases, maintains and managers single-family homes.
| Issuer: | Starwood Waypoint Residential Trust
|
| Issue: | Convertible senior notes
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | Oct. 15, 2017
|
| Coupon: | 4.5%
|
| Initial conversion premium: | 20%
|
| Conversion price: | $30.04
|
| Conversion ratio: | 33.2934
|
| Contingent conversion: | Yes
|
| Net share settlement: | Yes
|
| Call: | Non-callable
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and BofA Merrill Lynch
|
| Distribution: | Rule 144A
|
| Pricing date: | Oct. 7, after close
|
| Stock symbol: | NYSE: SWAY
|
| Stock price: | $25.03 at close on Oct. 7
|
| Market capitalization: | $967 million
|
| Price talk: | 4% to 4.5%, up 20% to 25%
|
|
|
|
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
