Western Asset Mortgage Capital reopens 6.75% convertibles due 2022

By Rebecca Melvin

New York, Aug. 19 – Western Asset Mortgage Capital Corp. has commenced an offering of its 6.75% convertible senior notes due 2022, in a reopening of an existing $115 million of notes priced in October 2017, according to a company news release.

The notes are being offered by JMP Securities as the underwriter.

The company has the right to redeem the notes on or after July 1, 2022. Prior to July 1, 2022, they will be convertible only upon certain circumstances and during certain periods, and thereafter will be convertible at any time prior to the close of business on the business day immediately preceding the maturity on Oct. 1, 2022.

The notes will be convertible into cash, shares of the company's common stock or a combination thereof, at the company's sole election.

The company plans to use proceeds from the offering primarily for general corporate purposes, including to opportunistically invest in credit sensitive investments consisting of residential whole loans, commercial loans, non-agency CMBS and non-agency RMBS. The exact investments will depend on prevailing market and investment conditions at the time its manager Western Asset Management Co., LLC invests the net proceeds.

The offering is being made under an effective shelf registration statement filed by the company with the Securities and Exchange Commission.

The Pasadena, Calif., company invests in mortgage-backed securities.

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