A real estate investment trust
New Plan Excel Realty Trust
said Wednesday that it priced offering of $175 million of 3.7% senior convertible notes due 2026 to qualified institutional buyers. The company also granted the initial purchasers an option to purchase up to an additional $25 million of notes to cover overallotments.
The sale of the notes is expected to close on Sept. 19.
The REIT said it expects to use the proceeds from the offering to repurchase concurrently with the offering about $50 million of its common stock at a price of $26.83 a share and for general corporate purposes, including the repayment of indebtedness under its $350 million revolving credit facility.
Before Sept. 15, 2025, upon the occurrence of specified events, the notes will be convertible at the option of the holder at an initial conversion rate of 30.5506 shares per $1,000 principal amount of notes. On or after Sept. 15, 2025, the notes will be convertible at any time prior to the second business day prior to maturity at the option of the holder.
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