Campus Crest greenshoe lifts 4.75% exchangeables to $100 million

By Toni Weeks

San Luis Obispo, Calif., Oct. 9 - Underwriters for Campus Crest Communities Operating Partnership LP's offering of 4.75% exchangeable senior notes due Oct. 15, 2018 exercised their over-allotment option for an additional $15 million of convertibles on Oct. 9, lifting the deal to $100 million, according to an 8-K filing with the Securities and Exchange Commission.

The issuer, which is the operating entity of Campus Crest Communities Inc., priced $85 million of the exchangeables with a $15 million greenshoe at par on Oct. 3. The deal was originally talked at $75 million in size with an $11.25 million greenshoe.

Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., Raymond James & Associates, Inc., RBC Capital Markets, LLC and Robert W. Baird & Co. Inc. were the underwriters for the Rule 144A deal.

The notes are exchangeable, under certain circumstances, for cash, common shares or a combination of cash and common shares at the operating partnership's option. The initial exchange rate is 79.602 shares per $1,000 principal amount of notes, which correlates to an exchange price of $12.56 per share, a roughly 25% premium to the closing price of the stock on Oct. 3, $10.05 per share.

Proceeds will be used to repay debt, for future development or other general corporate purposes and for working capital.

Charlotte, N.C.-based Campus Crest builds, owns and manages student housing properties located close to college campuses.

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