Invitation Homes plans physical settlement for 3% convertibles

By Wendy Van Sickle

Columbus, Ohio, Jan. 3 – Invitation Homes Inc. plans to settle conversions of its $230 million of 3% convertible senior notes due July 1, 2019 with common shares, according to a press release.

The issuer has the option to settle conversions of the notes in cash, common shares or a combination thereof and “believes that a common share settlement is the option most aligned with its stated balance sheet strategy of reducing leverage and pursuing an investment grade rating,” according to the release.

As of Sept. 30, the conversion ratio was 53.7294 shares per $1,000 principal amount of notes.

Noteholders who do not elect conversion of their notes by June 27, 2019 will receive the par value of the notes in cash at maturity.

Assuming the Sept. 30 conversion ratio, settlement of the $230 million of notes would result in the issuance of about 12.4 million common shares and a reduction in cash interest expense of about $6.9 million on an annualized basis.

Invitation Homes is a Dallas-based property manager.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.