By Stephanie N. Rotondo and Wendy Van Sickle
Seattle, May 1 – Blackstone Mortgage Trust Inc. priced $250 million of 4.375% five-year convertible senior notes on with an initial conversion premium of 15% Monday, according to a news release.
The offering had been talked to yield 3.875% to 4.375% with an initial conversion premium of 15% to 20%.
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, BofA Merrill Lynch, Barclays and J.P. Morgan Securities LLC are the joint bookrunners.
There is a $37.5 million over-allotment option.
Conversions will be settled in cash, class A common stock or a combination of both.
The convertibles are contingently convertible prior to Feb. 1, 2022 and are convertible at any time after that date.
Settlement is expected on May 5.
Proceeds will be used to originate and purchase additional commercial mortgage loans and other target assets and investments consistent with its investment strategies and investment guidelines, and for working capital and other general corporate purposes, including repayment of debt, the company said in a press release.
Blackstone Mortgage is a New York-based real estate investment trust.
| Issuer: | Blackstone Mortgage Trust Inc.
|
| Issue: | Convertible notes
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| Amount: | $250 million
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| Greenshoe: | $37.5 million
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| Maturity: | May 5, 2022
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| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, BofA Merrill Lynch, Barclays and J.P. Morgan Securities LLC
|
| Coupon: | 4.375%
|
| Conversion premium: | 15%
|
| Conversion price: | $35.67 per share (approximate)
|
| Conversion rate: | 28.0324 class A shares per $1,000 of notes
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| Conversion: | After Feb. 1, 2022 at any time; prior to that contingently
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| Price talk: | 3.875% to 4.375% with conversion premium of 15% to 20%
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| Pricing date: | May 1
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| Settlement date: | May 5
|
| Stock symbol: | NYSE: BXMT
|
| Stock reference price: | $31.02 at close May 1
|
| Market capitalization: | $2.94 million
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