By Rebecca Melvin
New York, Oct. 10 – Granite Point Mortgage Trust Inc. priced $125 million of five-year convertible notes at par after the market close on Tuesday to yield 6.375% with an initial conversion premium of 10%, according to a syndicate source.
Pricing came in the middle of 6.25% to 6.5% talk for the coupon and at the premium that was fixed during marketing.
Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunning managers for the registered deal, which carries a greenshoe of $18.75 million.
The notes are non-callable.
There is dividend protection for any dividend paid above 42 cents quarterly.
Conversions will be settled in stock.
Proceeds will be used to originate or acquire senior floating-rate commercial real estate loans and other target assets, and for working capital and other general corporate purposes.
Granite Point is a New York-based real estate investment trust.
| Issuer: | Granite Point Mortgage Trust Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $125 million
|
| Greenshoe: | $18.75 million
|
| Maturity: | Oct. 1, 2023
|
| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | JMP Securities, Keefe, Bruyette & Woods and Raymond James
|
| Coupon: | 6.375%
|
| Price: | Par
|
| Yield: | 6.375%
|
| Conversion premium: | 10%
|
| Conversion price: | $20.47
|
| Conversion rate: | 48.8496
|
| Dividend protection: | For any dividend paid above 42 cents per share
|
| Call options: | Non-callable
|
| Pricing date: | Oct. 9
|
| Settlement date: | Oct. 12
|
| Distribution: | SEC registered
|
| Talk: | 6.25%-6.5% coupon, up 10%
|
| Stock symbol: | Nasdaq: GPMT
|
| Stock price: | $18.61 at market close Oct. 9
|
| Market capitalization: | $808.72 million
|
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