Washington REIT to price $100 million of 20-year convertibles at 3.875%, up 22%, reoffering at 99-99.5

By Kenneth Lim

Boston, Sept. 5 - Washington Real Estate Investment Trust plans to price Wednesday before the market opens $100 million of 20-year convertible senior notes, with the reoffer range at 99 to 99.5 and terms set at a coupon of 3.875% and an initial conversion premium of 22%.

The overnight deal has an over-allotment option for a further $10 million.

Credit Suisse is the bookrunner of the registered off-the-shelf deal.

The convertibles will be non-callable for the first five years, with puts in years five, 10 and 15.

There is a contingent conversion threshold at 130% of the conversion price.

There will be a net-share settlement feature.

The convertibles will have dividend and takeover protection.

Washington, a Rockville, Md.-based investment trust with properties in the greater Washington/Baltimore metro region, said it will use the proceeds to repay its $105 million outstanding of 5.9065% debt due between July 2007 and July 2008.

Washington stock (NYSE: WRE) closed at $40.80 on Tuesday before the deal was announced.

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