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Sutherland Asset Management announces pricing of notes offering

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Sutherland Asset Management announces pricing of notes offering

Sutherland Asset Management Corp. has announced the pricing of its public offering of $100 million of its 7% convertible senior notes.

The company granted the underwriters an option to buy up to an additional $15 million of the notes at the public offering price minus the underwriting discount.

Net proceeds are expected to be $96.4 million after underwriting discounts and commissions and estimated offering expenses, assuming the underwriters do not exercise their option to buy more notes. The company plans to use the net proceeds to acquire additional mortgage loans and mortgage-related assets and for general corporate purposes.

The notes will mature Aug. 15, 2023, unless they are repurchased, redeemed or converted earlier. Interest will be payable Feb. 15, May 15, Aug. 15 and Nov. 15 of each year beginning Nov. 15. During certain periods and under certain conditions, the notes will be convertible into common shares at an initial conversion rate of 1.4997 common shares per $25 of notes, equivalent to an initial conversion price of about $16.67 per common share. Upon conversion, holders of the notes will receive cash, common stock or a combination at the company's discretion.

The offering is expected to close Aug. 9. Keefe Bruyette & Woods Inc. and JMP Securities LLC served as joint book-running managers. Compass Point Research & Trading LLC served as co-manager.