Blackstone greenshoe ups 4.375% convertibles add-on to $115 million

By Wendy Van Sickle

Columbus, Ohio, Aug. 11 – Underwriters for Blackstone Mortgage Trust Inc.’s add-on to its 4.375% convertible senior notes due 2022 fully exercised their $15 million over-allotment option on Friday, increasing the total deal size to $115 million, according to a news release.

As previously reported, the company priced a $100 million tap of the convertibles at 100.375% of par on Aug. 8.

The company originally sold $250 million of the convertibles at a discounted price of 99 on May 2. A $37.5 million greenshoe was exercised May 23.

In total, there is now $402.5 million of the convertibles outstanding.

Barclays was the bookrunner for the add-on.

Conversions will be settled in cash, class A common stock or a combination of both. The conversion rate is 28.0324 shares per each $1,000 of notes, equal to an initial conversion price of $35.67 a share.

At the time of the initial deal’s pricing, the conversion price represented an initial conversion premium of 15%.

The convertibles are contingently convertible prior to Feb. 1, 2022 and are convertible at any time after that date.

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.

Blackstone Mortgage is a New York-based real estate investment trust.

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