Innovative Industrial Properties said June 9 it plans to raise $250 million through exchangeable senior notes due 2029, with the initial purchasers also getting a 13-day option to buy up to another $37.5 million.
The company said up to $50 million of the proceeds would be used to repurchase shares from certain note buyers in privately negotiated transactions. That would leave at least $200 million from the base offering, and as much as $237.5 million if the over-allotment option is fully exercised, for working capital and general corporate purposes, including debt repayment and investments.
The notes will be unsecured obligations of IIP Operating Partnership and guaranteed by Innovative Industrial Properties. They will be exchangeable for cash, company shares, or a mix of both, at the operating partnership’s option. The company said the interest rate, exchange rate and other terms have not yet been set.
The transaction follows a capital-markets move that could also affect the company’s stock: the company said repurchases tied to the offering may increase, or reduce the size of any decline in, the market price of its common stock. Today the company's shares have moved -2.1% to a price of $60.475. For more information, read the company's full 8-K submission here.
