Western Asset Mortgage Capital Corporation Announces Pricing Of 6.75% Convertible Senior Notes Due 2022
Western Asset Mortgage Capital Corporation Announces Pricing Of 6.75% Convertible Senior Notes Due 2022 |
[20-August-2019] |
PASADENA, Calif., Aug. 20, 2019 /PRNewswire/ -- Western Asset Mortgage Capital Corporation (NYSE: WMC) (the "Company") today announced the pricing of its previously announced public offering of 6.75% Convertible Senior Notes due 2022 (the "Reopened Notes"). The Reopened Notes will have an aggregate principal amount of $40,000,000. The offering is expected to close on or about August 22, 2019, subject to satisfaction of customary closing conditions. The Reopened Notes will be a further issuance of, be fully fungible with, and rank equally in right of payment with and form a single series with the $115,000,000 principal amount of 6.75% Convertible Senior Notes issued by the Company in October 2017 (the "Existing Notes" and, together with the Reopened Notes, the "Notes"). The Reopened Notes will have substantially identical terms as the Existing Notes and will have the same CUSIP number as the Existing Notes. The Notes will bear interest at a rate equal to 6.75% per year, payable semiannually and will mature on October 1, 2022, unless earlier converted, redeemed or repurchased. The Company will have the right to redeem the Notes on or after July 1, 2022. Prior to July 1, 2022, the Notes will be convertible only upon certain circumstances and during certain periods, and thereafter will be convertible at any time prior to the close of business on the business day immediately preceding the maturity date of the Notes. The Notes will be convertible into cash, shares of the Company's common stock or a combination thereof, at the Company's sole election. The conversion rate will initially equal 83.1947 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $12.02 per share of common stock, representing an approximate 24% conversion premium based on the closing price of the Company's common stock of $9.70 per share on August 19, 2019. The Company intends to use the net proceeds from the offering primarily for general corporate purposes, including to opportunistically invest in credit sensitive investments consisting of Residential Whole Loans, Commercial Loans, Non-Agency CMBS and Non-Agency RMBS. The exact investment of the proceeds will depend on prevailing market and investment conditions at the time its manager Western Asset Management Company, LLC invests the net proceeds. JMP Securities is the sole underwriter for the offering. The offering is being made pursuant to an effective shelf registration statement, including a prospectus and related prospectus supplement, filed by the Company with the Securities and Exchange Commission (the "SEC"). These documents may be obtained for free by visiting the SEC's website at http://www.sec.gov. Alternatively, a copy of the preliminary prospectus supplement and accompanying prospectus related to the offering may be obtained, when available, by contacting JMP Securities LLC, 600 Montgomery Street, 10th Floor, San Francisco, CA 94111, Attention: Prospectus Department, or by calling (212) 906-3523. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. ABOUT WESTERN ASSET MORTGAGE CAPITAL CORPORATION FORWARD-LOOKING STATEMENTS
View original content:http://www.prnewswire.com/news-releases/western-asset-mortgage-capital-corporation-announces-pricing-of-6-75-convertible-senior-notes-due-2022--300904299.html SOURCE Western Asset Mortgage Capital Corporation | ||
Company Codes: NYSE:WMC |
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