Western Asset Mortgage offers three-year convertibles at 6.75%, up 10%

By Abigail W. Adams

Portland, Me., Sept. 9 – Western Asset Mortgage Capital Corp. plans to price an offering of three-year convertible notes prior to the market open on Friday with price talk for a fixed coupon of 6.75% and a fixed initial conversion premium of 10%, according to a market source.

JMP Securities LLC is underwriter for the registered offering with the offering size to be determined.

The notes are non-callable until June 15, 2024.

They are putable upon a fundamental change.

Concurrently, the company plans to repurchase its outstanding 6.75% convertible notes due 2022.

Proceeds, together with $25 million in cash, will be used fund the repurchase of the 6.75% notes with remaining proceeds to be used for general corporate purposes.

Western Asset Mortgage Capital is a Pasadena, Calif.-based real estate investment trust.

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