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LNR Property Corp. Selling $200M in Notes

MIAMI BEACH-The locally based real estate investment and management company is selling that principal amount of its 5.5% contingent convertible senior subordinated notes due 2023.

By Melissa Bogdany | Updated on March 07, 2003

MIAMI BEACH-LNR Property Corp., a publicly traded, a real estate investment, finance and management company based here, is selling $200 million in principal amount of its 5.5% contingent convertible senior subordinated notes due 2023. LNR is giving the initial buyers an option to buy up to an additional $35 million in principal notes.

In addition to bearing fixed 5.5% interest that accrues from the issue date, starting in 2008, LNR will pay extra interest in specific six-month periods in the amount of 0.1875% of the market price of the notes, if at the end of the prior six-month period, the market price of the notes is more than $1,200 per $1,000 in principal amount.

The notes will be changeable into LNR common stock at a $45.28 conversion price per share in certain situations, such as when the market price of the common stock is more than 120% of the conversion price. LNR plans to use about $100 million in net proceeds from the notes sale to repay senior secured and unsecured revolving credit debt.

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