By Kenneth Lim
Boston, July 28 - Weingarten Realty Investors priced an upsized $575 million of 20-year convertible senior unsecured notes at the cheap end of talk, with a reoffered price of 98.125 per note, a coupon of 3.95% and an initial conversion premium of 25%.
The overnight deal priced Friday before the market opened. Price talk guided for a reoffer range between 98.125 and 98.375, a coupon of 3.875% to 3.95% and an initial conversion premium of 25%.
The size of the deal was originally $450 million but was increased to $500 million. In addition, the over-allotment option was fully exercised for a further $75 million, raised from the original $67.5 million.
Citigroup, JP Morgan and Morgan Stanley were the bookrunners of the Rule 144A offering.
The convertibles are non-callable for the first five years, with puts in years five, 10 and 15.
They have full dividend and takeover protection.
The convertibles may be settled in cash.
Weingarten is a Houston-based real estate investment trust with a portfolio of shopping centers and industrial properties in the United States. It plans to use the proceeds of the deal to buy back about $167.6 million of its common shares, to reduce its debt from a revolving loan and for general purposes.
| Issuer: | Weingarten Realty Investors
|
| Issue: | Convertible senior unsecured notes
|
| Bookrunners: | Morgan Stanley, Citigroup, JP Morgan
|
| Amount: | $575 million (including $75 million greenshoe)
|
| Greenshoe: | $75 million, already exercised
|
| Maturity: | Aug. 1, 2026
|
| Coupon: | 3.95%
|
| Price: | Par, reoffered at 98.125
|
| Yield: | 3.95%
|
| Conversion premium: | 25%
|
| Conversion price: | $49.075
|
| Conversion ratio: | 20.3770
|
| Cash settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable five years
|
| Puts: | Years five, 10, 15
|
| Price talk: | 3.875%-3.95%, up 25%, reoffered at 98.125-98.375
|
| Pricing date: | July 28 before the open
|
| Settlement date: | Aug. 2
|
| Distribution: | Rule 144A
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