Blackstone Mortgage Trust Inc. has priced its public offering of $220.0 million aggregate principal amount of its 4.75% convertible senior notes due 2023.
Gross proceeds from the offering are expected to be about $220.0 million, or $253.0 million if the underwriters exercise their option to purchase additional notes to cover any overallotment.
The company plans to use the net proceeds from the offering 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 have an initial conversion rate of 27.61 of the company's class A common shares per $1,000 principal amount of the notes. Before Dec. 15, 2022, the notes may only be converted under certain conditions and during certain periods.
The offering is expected to close March 27.
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. JMP Securities and Keefe Bruyette & Woods are acting as co-managers.