Gramercy slips a bit more after pricing exchangeable note offering


The $100M of 5-year notes carry a coupon of 3.75%. The initial exchange rate is 161.1863 shares of GPT common stock for every $1K principal amount of notes - an equivalent exchange price of $6.20, or a 20% premium to last night's close.

Shares -0.4% to $5.15 premarket

Comments (2)
  • gsterling
    , contributor
    Comments (1409) | Send Message
     
    Actually I think those terms are pretty damn good. Stock up now.
    19 Mar 2014, 09:47 AM Reply Like
  • vjrao
    , contributor
    Comments (72) | Send Message
     
    I think the terms are extremely good for GPT:

     

    - 3.75% annual coupon, 5 yr maturity
    - Sr. Unsecured borrowing
    - Callable in 3 years
    - Exchangeable for $6.20/sh (20% premium to last night's close) in cash and shares
    - Exchange share cap unless equity issuance in excess of 19.99% of shares.

     

    I would much rather be an equity holder in GPT at this point than a holder of this note!! Kudos to the management team for getting a deal done on favorable terms!!

     

    Disclosure: Long GPT equity
    19 Mar 2014, 12:26 PM Reply Like
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