By Rebecca Melvin
New York, April 1 - Corporate Office Properties Trust priced $200 million of exchangeable senior notes due 2030 at par late Wednesday 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 the joint bookrunners for the Rule 144A sale.
The notes were sold through subsidiary Corporate Office Properties, LP.
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.
| Issuer: | Corporate Office Properties LP
|
| Issue: | Exchangeable senior notes
|
| Amount: | $200 million
|
| Greenshoe: | $40 million
|
| Maturity: | April 15, 2030
|
| Bookrunners: | RBC Capital Markets Corp. and J.P. Morgan Securities Inc.
|
| Coupon: | 4.25%
|
| Price: | Par, $1,000
|
| Yield: | 4.25%
|
| Conversion premium: | 20%
|
| Conversion price: | $48.16
|
| Conversion ratio: | 20.7658
|
| Call protection: | Non-callable for five years
|
| Puts: | In years 2015, 2020, and 2025
|
| Contingent conversion: | Yes
|
| Net share settlement: | Yes
|
| Price talk: | 3.5%-4%, up 20%-25%
|
| Pricing date: | March 31
|
| Settlement date: | April 7
|
| Distribution: | Rule 144A
|
| Stock reference price: | $40.03
|
| Stock listing: | NYSE: OFC
|
| Market capitalization: | $2.34 billion
|
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