Resource Capital Corp. plans to offer $125.0 million of convertible senior notes due 2022 to the public.
The company expects to grant the underwriters the option to buy up to an additional $18.8 million of the notes to cover overallotments.
Resource Capital plans to use the net proceeds to buy back part of its 6.00% convertible senior notes due 2018 and 8.00% convertible senior notes due 2020, but the company does not have the right to call any of those notes before they mature. Therefore, the company may not be successful in buying back any of the notes. Any remaining net proceeds will be used for general corporate purposes.
Credit Suisse Securities (USA) LLC is acting as book runner, and JMP Securities LLC is acting as co-manager for the offering.