CTO Realty Growth, Inc. (NYSE: CTO) has announced the partial extinguishment of its 3.875% convertible senior notes due April 15, 2025. The notes had an aggregate principal amount of $51.0 million prior to the exchange agreements. The company exchanged $35.2 million aggregate principal amount of the notes for 1,089,555 newly issued shares of its common stock and $29.0 million in cash, including $0.6 million representing accrued interest. This leaves $15.8 million aggregate principal amount of the notes outstanding, scheduled to be settled in cash on the maturity date of April 15, 2025, with the company estimating the cash settlement to be approximately $22 million.
As a result of these exchange agreements, CTO now has 32,936,967 common shares outstanding as of April 3, 2025. The exchanges were made pursuant to an exemption from registration provided in section 4(a)(2) of the Securities Act of 1933. Truist Securities and ICR Capital LLC acted as the company’s financial advisors.
CTO Realty Growth, Inc. owns and operates high-quality, open-air shopping centers in the higher growth southeast and southwest markets of the United States and externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE). The market has reacted to these announcements by moving the company's shares -2.1% to a price of $18.5. If you want to know more, read the company's complete 8-K report here.
