Corporate Office Properties prices $200 million 20-year exchangeables to yield 4.25%, up 20%

New York, March 31 - Corporate Office Properties Trust priced $200 million of exchangeable senior notes due 2030 to yield 4.25% with a 20% initial conversion premium.

The offering came cheaper than yield talk of 3.5% to 4% and at the cheap end of conversion premium talk of 20% to 25%.

RBC Capital Markets Corp. and J.P. Morgan Securities Inc. were joint bookrunners for the Rule 144A sale.

The notes, sold through subsidiary Corporate Office Properties, LP, were priced after the close Wednesday.

The exchange price is $48.16 and the exchange ratio 20.7658.

Holders can exchange the notes after April 20, 2015. Corporate Office Properties, LP will pay cash and, at its, option deliver shares of the parent for exchanges.

The offering has a $40 million greenshoe.

Proceeds from the sale are expected to be used for general corporate purposes, including potential repayment of borrowings under the company's unsecured revolving credit facility.

The exchangeables will be non-callable for five years, with investor puts in years five, 10 and 15. There is net share settlement upon exchange.

Columbia, Md.-based Corporate Office Properties is a real estate investment trust focused on the acquisition, development and management of suburban office properties.

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