Blackstone Mortgage Trust Inc. announced the pricing of an underwritten public offering of $100.0 million of its 4.375% convertible senior notes due 2022.
This is an additional offering of such convertible notes, as $287.5 million of them were previously issued. The additional notes will be consolidated with the previously issued notes.
The offering is subject to customary closing conditions and is expected to close Aug. 11.
The offering is expected to generate gross proceeds of approximately $100.0 million, or $115.0 million if the underwriter exercises its overallotment option. Blackstone Mortgage intends to use the net proceeds to originate and purchase additional commercial mortgage loans and other target assets and investments, and for working capital and other general corporate purposes, including repayment of debt.
The notes will pay interest semiannually at an annual rate of 4.375% and will mature May 5, 2022. They will have an initial conversion rate of 28.0324 shares of the company's class A common stock per $1,000 principal amount of the notes. The initial conversion rate is subject to adjustment upon the occurrence of certain events.
The notes will be convertible only upon certain circumstances and during certain periods prior to Feb. 1, 2022. After that, they will be convertible at any time prior to the close of business on the second scheduled trading day prior to maturity.
Barclays is acting as sole book-running manager for the offering.