New York, March 22 – Blackstone Mortgage Trust, Inc. priced $220 million of 4.75% convertible senior notes due 2023 with a 15% initial conversion premium, according to a news release.
The coupon and conversion premium matched the fixed levels included in talk but the news release did not disclose the issue price. It did say that gross proceeds were $220 million.
The convertibles had been talked at a price of 99 to 99.5, according to a market source.
There is a greenshoe for a further $33 million.
BofA Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., JPMorgan Securities LLC, Morgan Stanley and Wells Fargo Securities LLC are joint bookrunners for the registered offering.
There are no call or put options on the notes. There is takeover protection.
The notes are contingently convertible until Dec. 15, 2022 when they become freely convertible. They may be converted prior to Dec. 15, 2022 subject to a 110% threshold.
Conversion will be settled in cash, shares or a combination of both.
Proceeds will be used to originate and purchase commercial mortgage loans and other target assets, to repay debt and for general corporate purposes.
Blackstone Mortgage Trust is a New York-based real estate finance company.
| Issuer: | Blackstone Mortgage Trust, Inc.
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| Issue: | Convertible senior notes
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| Amount: | $220 million
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| Greenshoe: | $33 million
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| Maturity: | March 15, 2023
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| Coupon: | 4.75%
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| Initial conversion premium: | 15%
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| Conversion price: | $36.23
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| Conversion rate: | 27.6052
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| Contingent conversion: | Yes
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| Bookrunners: | BofA Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., JPMorgan Securities LLC, Morgan Stanley and Wells Fargo Securities LLC
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| Co-managers: | JMP Securities and Keefe, Bruyette & Woods
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| Pricing date: | March 22
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| Settlement date: | March 27
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| Stock symbol: | NYSE: BXMT
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| Stock price: | $31.50 at close on March 22
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| Market capitalization: | $3.44 billion
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