Blackstone Mortgage Trust Inc. commenced an underwritten public offering of $220.0 million of convertible senior notes due 2023.
The company granted the underwriters a 30-day option to purchase up to an additional $33.0 million of the notes solely to cover overallotments.
Blackstone Mortgage intends to use the net proceeds from the offering to originate and purchase additional commercial mortgage loans and other target assets and investments, for working capital, and other general corporate purposes, including repayment of debt.
The notes will mature on March 15, 2023. The notes will be convertible only upon certain circumstances and during certain periods prior to Dec. 15, 2022, and thereafter will be convertible at any time prior to the close of business on the second scheduled trading day prior to maturity. Upon conversion, holders will receive cash, shares of the company's class A common stock or a combination of cash and stock.
Bank of America Merrill Lynch, Barclays, Citigroup, J.P. Morgan, Morgan Stanley and Wells Fargo Securities are acting as joint book-running managers for the offering.