Great Ajax Corp. plans to offer an underwritten public offering of convertible senior notes due April 30, 2024.
The notes represent an additional offering of the company's 7.25% convertible notes due 2024, of which $87.5 million of the aggregate principal amount were previously issued.
The company intends to use the net proceeds from the offering to acquire more mortgage loans and mortgage-related assets and for general corporate purposes.
The notes will have an initial conversion rate of 1.6290 shares of the company's common stock per $25 principal amount of the notes. Upon conversion, the holders will receive cash, common stock, or a combination, at the company's discretion.
Great Ajax may redeem all or a portion of the notes on or after April 30, 2022, subject to certain conditions at a redemption price payable in cash equal to the full amount of the principal amount of the redeemed notes, in addition to accrued interest. In addition, the holders may require the company to purchase the notes under the same conditions.
Raymond James & Associates Inc. and JMP Securities LLC are serving as joint book-running managers for the public offering.