Invitation Homes Inc. is planning a physical settlement of its 3.00% convertible senior notes due July 1, with an outstanding par value of $230 million.
The single-family home real estate investment trust aims to settle the conversions with common shares. As of Sept. 30, 2018, the conversion ratio was 53.7294 shares per $1,000 principal amount of the notes, subject to adjustment.
Assuming the Sept. 30, 2018, conversion ratio, the $230 million of notes would be settled by the issuance of about 12.4 million common shares and an approximately $6.9 million reduction in annual cash interest costs.
The REIT said note holders may elect to convert their notes until June 27. After the June 27 deadline, notes would be repaid in cash at the notes' par value on the due date.