Winthrop offers new preferreds for series B-1 convertible preferreds

By Jennifer Chiou

New York, Oct. 14 - Winthrop Realty Trust said it began a conversion offer for its series B-1 cumulative convertible redeemable preferred shares.

The Boston-based real estate investment trust said that holders will have the option to convert all or any portion of their series B-1 preferreds for an equivalent number of newly issued series C preferred shares.

The offer is set to end on Oct. 28 with settlement slated for Nov. 1.

Winthrop noted that the dividend rate, liquidation value and redemption date of the series C preferreds are the same as the series B-1 preferreds.

On the other hand, the series C preferreds' terms allow Winthrop to issue additional preferred shares which are on par with the series C shares.

Additionally, the initial conversion price of the series C preferreds will be $14.00, which is a reduction from the $22.50 conversion price on the series B-1 preferreds.

As a result, each series C preferred will initially be convertible into 1.786 common shares as compared to each series B-1 preferred, which is convertible into 1.111 common shares.

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