Macerich retires $279.6 million 3.25% convertibles for $153.7 million

By Susanna Moon

Chicago, Feb. 27 - Macerich Co. repurchased and retired $222.8 million of its 3.25% senior convertible notes due March 15, 2012 from Oct. 21 to Dec. 29, according to a 10-K filing with the Securities and Exchange Commission.

As a result, the company recorded a gain of $95.3 on early extinguishment of debt for the year ended Dec. 31.

Macerich said the purchase price of $122.8 million was funded by additional borrowings on its line of credit.

On Feb. 13 and Feb. 17, the company retired an additional $56.8 million of the notes for $30.9 million, resulting in a gain on early extinguishment of debt of $25.1 million.

The company issued $950 million of the notes on March 16, 2007.

The notes are convertible upon the occurrence of certain events until Dec. 14, 2011 at a rate of 8.9702 shares per $1,000 principal amount, with the conversion amount payable in cash, common stock or a combination of cash and shares, at the election of the company. Beginning Dec. 15, 2011, the notes are convertible at any time.

The conversion price is $111.48 per share, which represents a 20% premium over the closing price of the company's common stock on March 12, 2007.

The company's adjusted stock price closed at $11.54 (NYSE: MAC) on Thursday. The company's stock closed at $92.90 on March 12, 2007, or at an adjusted price of $78.26.

Macerich is a Santa Monica, Calif.-based real estate investment trust that focuses on regional and community shopping centers.

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