Corporate Office Properties greenshoe exercised in full, lifts exchangeables to $240 million

By Devika Patel

Knoxville, Tenn., April 13 - Underwriters for Corporate Office Properties Trust's issue of 4.25% 20-year exchangeable senior notes exercised their over-allotment option in full for $40 million more of the exchangeables, increasing the size of the issue to $240 million, the company said in an S-3 filed Tuesday with the Securities and Exchange Commission.

As previously reported, the company sold the notes at par in a Rule 144A offering on March 31 via joint bookrunners RBC Capital Markets Corp. and J.P. Morgan Securities Inc.

The notes have an initial conversion premium of 20% and a conversion price of $48.16, which equals a conversion ratio of 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 exchangeables are non-callable for the first five years, with puts in years five, 10 and 15. There is net share settlement upon exchange.

Proceeds will be used for general corporate purposes, including potential repayment of borrowings under the company's unsecured revolving credit facility.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.