Granite Point Mortgage Trust commenced an underwritten public offering of $125 million in senior unsecured convertible notes due 2023.

The company may grant a 30-day option for underwriters to purchase up to an additional $18.75 million of the notes to cover overallotments.

The notes will pay interest semiannually and holders will be able to convert the notes into common shares.

Morgan Stanley, Citigroup, J.P. Morgan and Wells Fargo Securities are the joint book-running managers for the offering. JMP Securities, Keefe Bruyette & Woods and Raymond James are co-managers for the offering.