By Kenneth Lim
Boston, Aug. 11 - Tanger Factory Outlet Centers Inc. on Thursday priced an upsized $130 million of 20-year exchangeable senior unsecured notes within talk, at a coupon of 3.75% and an initial exchange premium of 18%.
The notes were offered at par, and were talked at a coupon of 3.45% to 3.95% and an initial exchange premium of 17.5% to 22.5%. The size of the deal was originally $100 million, while the greenshoe of a further $19.5 million was increased from the initial $15 million greenshoe.
Tanger will guarantee the notes, which will be issued by Tanger subsidiary Tanger Properties LP.
Citigroup and Banc of America Securities LLC are the bookrunners for the registered off-the-shelf offering.
The notes will are non-callable for the first five years, with puts in years five, 10 and 15.
There is a contingent exchange hurdle at 130% of the conversion price.
They have full dividend and takeover protection.
Tanger, a Greensboro, N.C.-based real estate investment trust that owns 29 factory outlet retail malls in the United States, said it will use the proceeds of the deal to pay down its revolving loans and other debt, to make additional investments and for general purposes.
| Issuer: | Tanger Properties LP
|
| Issue: | Exchangeable senior unsecured notes
|
| Exchange property: | Tanger Factory Outlet Centers Inc. common stock
|
| Bookrunners: | Banc of America Securities LLC and Citigroup
|
| Amount: | $130 million
|
| Greenshoe: | $19.5 million
|
| Maturity: | Aug. 15, 2026
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 18%
|
| Conversion price: | $36.1198
|
| Conversion ratio: | 27.6856
|
| Contingent conversion: | 130%
|
| Cash settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable five years
|
| Puts: | Years five, 10, 15
|
| Price talk: | 3.45%-3.95%, up 17.5%-22.5%
|
| Pricing date: | Aug. 10 after the close
|
| Settlement date: | Aug. 16
|
| Guarantees: | Tanger Factory Outlet Centers Inc.
|
| Distribution: | Registered
|
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