Western Asset Mortgage Capital Corp. priced an underwritten public offering of its 6.75% convertible senior notes due Oct. 1, 2022. The notes will have an aggregate principal amount of $40 million.
The offering, which is expected to close on or about Aug. 22, is a reopening of notes originally issued in October 2017. The reopened notes will have substantially identical terms as the previously issued notes.
Interest on the notes will be payable semiannually. The company may redeem the notes on or after July 1, 2022. Prior to that date, the notes will be convertible only in certain circumstances and during certain periods.
The conversion rate will initially equal 83.1947 shares of common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of about $12.02 per common share.
The company intends to use the net proceeds for general corporate purposes, including to opportunistically invest in credit-sensitive investments consisting of residential whole loans, commercial loans, nonagency commercial mortgage-backed securities and nonagency residential mortgage-backed securities.
JMP Securities is the sole underwriter for the offering.
