NEW YORK, Nov. 19, 2013 /PRNewswire/ -- Blackstone Mortgage Trust, Inc. (NYSE: BXMT) (the "Company") today announced the pricing of an underwritten public offering of $150.0 million aggregate principal amount of its 5.25% convertible senior notes due 2018 (the "Notes"). The offering is expected to close on November 25, 2013 and is subject to customary closing conditions. The offering will generate gross proceeds of approximately $150.0 million, or $172.5 million if the underwriters exercise their option to purchase additional Notes in full.
The Company intends to use the net proceeds from the offering to originate and purchase additional commercial mortgage loans and other target assets and investments consistent with its investment strategies and investment guidelines, and for working capital and other general corporate purposes.
The Notes will pay interest semiannually at a rate of 5.25% per annum and will mature on December 1, 2018. The Notes will have an initial conversion rate of 34.8943 shares of the Company's class A common stock per $1,000 principal amount of the Notes (equivalent to a conversion price of approximately $28.66 per share of the Company's class A common stock and a conversion premium of approximately 15% based on the closing share price of $24.92 per share of the Company's class A common stock on November 19, 2013). The initial conversion rate is subject to adjustment upon the occurrence of certain events, but will not be adjusted for any accrued and unpaid interest. Prior to September 1, 2018, the Notes will be convertible only upon certain circumstances and during certain periods, and thereafter will be convertible at any time prior to the close of business on the second scheduled trading day prior to maturity. Upon conversion, holders will receive cash, shares of the Company's class A common stock or a combination thereof at the Company's election.
Citigroup, BofA Merrill Lynch, J.P. Morgan and Wells Fargo Securities are acting as joint book-running managers for the offering. Blackstone Capital Markets is acting as co-manager.