Great Ajax to tap 7.25% convertible notes; price talk for a 1%-1.25% discounted offer price

By Abigail W. Adams

Portland, Me., Nov. 14 – Great Ajax Corp. plans to price an add-on to its $25-par 7.25% convertible notes due 2024 prior to the market open on Thursday with price talk for a 1% to 1.25% discount on the reoffer price, according to a market source.

The size of the offering is to-be-determined and may be enlarged from the targeted amount, the source said.

Raymond James & Associates and JMP Securities are joint bookrunners for the registered offering.

The notes are contingently convertible until April 30, 2023 subject to a 130% trigger, according to a 424B5 filing with the Securities and Exchange Commission.

The notes are callable after April 30, 2022 subject to a 130% hurdle.

The notes will have an initial conversion rate of 1.6388. They will be settled in cash, shares or a combination of both at the company’s option.

The 7.25% convertible notes currently have $108 million outstanding.

Great Ajax initially priced $87.5 million of the $25-par 7.25% convertible notes in April 2017 at par and priced a $20.5 million add-on at a reoffer price of $25.70 in August.

Great Ajax is a New York-based externally managed real estate investment trust.

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