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Great Ajax prices convertible debt offering

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Great Ajax prices convertible debt offering

Great Ajax Corp. priced an underwritten public offering of $20.5 million aggregate principal amount of its 7.25% convertible senior notes due April 30, 2024, at a price of $25.70, which represents a premium of 70 cents over the $25.00 par value per note.

The notes represent an additional offering of the company's 7.25% convertible senior notes due 2024, of which $87.5 million in aggregate principal amount were issued. The notes will pay interest quarterly at a rate of 7.25% per year.

The company expects gross proceeds of about $21.1 million, before underwriting discounts and commissions and estimated offering expenses, from the offering. 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 have an initial conversion rate of 1.6290 Great Ajax common shares per $25.00 principal amount of the notes. The notes will be convertible into Great Ajax common shares. Upon conversion, holders will receive, at the company's discretion, cash, Great Ajax common shares or a combination of both.

The company may redeem all or any portion of the notes, at its option, on or after April 30, 2022, at a redemption price payable in cash equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest. Holders may also require the company to buy the notes for cash at a purchase price equal to 100% of the principal amount of the notes to be purchased, plus accrued and unpaid interest.

The offering is expected to close Aug. 18.

Raymond James & Associates Inc. and JMP Securities LLC served as joint book-running managers for the offering.