Innovative Industrial Properties said June 9 it plans to raise $250 million through a private placement of exchangeable senior notes due 2029, with an option for initial purchasers to buy an additional $37.5 million.
The company said up to $50 million of the proceeds may be used to repurchase its common stock from certain note buyers in privately negotiated transactions. That would leave at least $200 million of the initial offering proceeds for working capital and general corporate purposes, including repayment of debt and funding investments.
The notes will be senior unsecured obligations of IIP Operating Partnership and will be fully and unconditionally guaranteed by the company. They will be exchangeable for cash, shares of Innovative Industrial Properties common stock, or a mix of cash and stock, at the operating partnership’s option.
The company did not disclose the interest rate, exchange rate or other pricing terms, saying those will be set in negotiations with the initial purchasers. Following these announcements, the company's shares moved -0.44%, and are now trading at a price of $61.50. If you want to know more, read the company's complete 8-K report here.
