By Abigail W. Adams
Portland, Me., Nov. 15 – Great Ajax Corp. priced a $15.85 million tap of its $25-par 7.25% convertible notes due 2024 at 98.8% of par, or $24.69, and an initial conversion premium of 16.3%, according to an FWP filing with the Securities and Exchange Commission.
Pricing came toward the cheap end of talk for a discounted issue price of 1% to 1.25% of par, according to a market source.
Raymond James & Associates and JMP Securities were joint bookrunners for the registered offering.
The add-on will form a single unit and follow the same terms as the outstanding 7.25% convertible notes due 2024.
The notes are contingently convertible until April 30, 2023 subject to a 130% trigger, according to a 424B5 filing with the SEC.
The notes are callable after April 30, 2022 subject to a 130% hurdle.
They will be settled in cash, shares or a combination of both at the company’s option.
The add-on lifts the total outstanding amount of the 7.25% convertible notes to $123.85 million.
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.
Net proceeds are expected to be $15.2 million. Proceeds will be used to acquire additional mortgage loans and mortgage-related assets.
Great Ajax is a New York-based externally managed real estate investment trust.
| Issuer: | Great Ajax Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $15.85 million
|
| Maturity: | April 30, 2024
|
| Bookrunners: | Raymond James & Associates and JMP Securities
|
| Coupon: | 7.25%
|
| Price: | 98.8% of par or $24.69
|
| Conversion premium: | 16.3%
|
| Conversion price: | $15.21
|
| Conversion rate: | 1.6438
|
| Call options: | Non-callable until April 30, 2022 then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Nov. 15
|
| Settlement date: | Nov. 19
|
| Distribution: | SEC registered
|
| Talk: | Discounted reoffer price of 1% to 1.25% of par
|
| Stock symbol: | NYSE: AJXA
|
| Stock price: | $13.65 at market close Nov. 14
|
| Market capitalization: | $246.15 million
|
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