New Issue: LNR Property upsizes 10-year notes to $300 million, yield 7¼%

By Paul A. Harris

St. Louis, Oct. 15 - LNR Property Corp. priced an upsized offering of $300 million of senior subordinated notes due Oct. 15, 2013 (Ba3/B+) at par Wednesday to yield 7¼%, according to a syndicate source.

The deal was increased from $275 million. Price talk was 7¼%-7 3/8%.

Deutsche Bank Securities ran the books for the Rule 144A offering. Banc of America Securities, Citigroup and Fleet Securities were co-managers.

LNR will use proceeds to fund a tender for its 10½% senior subordinated notes due 2009.

The issuer is a Miami real estate investment, finance and management company.

Issuer:	LNR Property Corp.
Amount:	$300 million (increased from $275 million)
Maturity:	Oct. 15, 2013
Security description:	Senior subordinated notes
Bookrunner:	Deutsche Bank Securities
Co-managers:	Banc of America Securities, Citigroup, Fleet Securities
Coupon:	7¼%
Price:	Par
Yield:	7¼%
Spread:	284 basis points
Call features:	Callable after Oct. 15, 2008 at 103.625, then 102.417, 101.208, declining to par on Oct. 15, 2011 and thereafter
Equity clawback:	Until Oct. 15, 2006 for 35% at 107.25
Settlement date:	Oct. 29
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Rule 144A Cusip:	501940AK6
Price talk:	7¼%-7 3/8%

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