As the sole lead underwriter, Deutsche Banc Alex. Brown first issued the company $100 million in senior subordinated notes. A total of $235 million in senior notes now comes due in January 2009.
The transaction emerged out of an investment conference LNR Properties held on Feb. 6 with several potential investors. At the conference, the company estimated the market value of its unencumbered assets at between $650 million to $800 million.
The company also estimated that the market value of its unencumbered assets exceeded book value of those assets by $200 million to $250 million. The company is posting a ratio of debt to net-asset value of about 0.9.
Announcement of the new debt issue follows recent news the company produced earnings per share of $3.32 for the year ended Nov. 30, which exceeded analysts' expectations by two cents a share.
The company reported net earnings of $116 million, or $3.32 per diluted share, on revenue of $473 million for the year, compared with net of $95.6 million, or $2.63 per diluted share, on revenue of $348 million for the same period the prior year.
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