Granite Point Mortgage Trust Inc. (NYSE: GPMT) (the Company), announced today the pricing of an underwritten public offering of $125 million aggregate principal amount of its 6.375% convertible senior notes due 2023 (the Notes). The offering is expected to close on October 12, 2018 and is subject to customary closing conditions. The Company has granted the underwriters an option to purchase up to an additional $18.75 million aggregate principal amount of the Notes.
The Company intends to use the net proceeds from the offering to originate or acquire senior floating rate commercial real estate loans and other target assets, consistent with its investment strategies and investment guidelines, and for working capital and other general corporate purposes, including repayment of indebtedness.
The Notes will be unsecured, pay interest semiannually at a rate of 6.375% per annum and will mature on October 1, 2023, unless earlier converted or repurchased in accordance with their terms. The Company will not have the right to redeem the Notes prior to maturity, but may be required to repurchase the Notes from holders under certain circumstances. The Notes will be convertible at the option of the holder into shares of the Companys common stock at an initial conversion rate of 48.8496 shares of the Companys common stock per $1,000 principal amount of the Notes (equivalent to an initial conversion price of approximately $20.47 per share), subject to adjustment.
Morgan Stanley, Citigroup, J.P. Morgan and Wells Fargo Securities are acting as the joint book-running managers for the offering. JMP Securities, Keefe, Bruyette & Woods, A Stifel Company, and Raymond James are acting as co-managers for the offering.
The offering was made pursuant to the companys existing shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission on August 15, 2018 (Commission File No. 333-226128). The offering may be made only by means of a prospectus supplement and accompanying prospectus, copies of which, when available, may be obtained by contacting: Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street 2nd floor, New York, NY, 10014; or Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, (Tel: 800-831-9146); or J.P. Morgan, Attention: Prospectus Department, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, (Tel: 866-803-9204); or Wells Fargo Securities, Attn: Equity Syndicate, 375 Park Avenue, New York, NY 10152, (Tel: 800-326-5897).
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, the Notes or any other securities, nor shall there be any sale of the companys securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Granite Point Mortgage Trust Inc.
Granite Point Mortgage Trust Inc. is a Maryland corporation focused on directly originating, investing in and managing senior floating rate commercial mortgage loans and other debt and debt-like commercial real estate investments. Granite Point intends to elect and qualify to be taxed as a REIT. Granite Point is headquartered in New York, NY, and is externally managed by Pine River Capital Management L.P.
Cautionary Notice Regarding Forward-Looking Statements
This release may include statements and information that constitute forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended, and we intend such forward-looking statements to be covered by the safe harbor provisions therein and are included in this statement for purposes of invoking these safe harbor provisions. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, targets, expectations, anticipations, assumptions, estimates, intentions and future performance. The forward-looking statements made in this release include, but may not be limited to, expectations regarding the use of proceeds from the offering.
Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. There can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks identified under the captions Risk Factors, Forward-Looking Statements and Managements Discussion and Analysis of Financial Condition and Results of Operations in our public filings with the SEC, which are available on the SECs website at www.sec.gov.
All written or oral forward-looking statements that we make, or that are attributable to us, are expressly qualified by this cautionary notice. Except to the extent required by applicable laws and regulations, we undertake no obligations to update these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Stockholders of Granite Point and other interested persons may find additional information regarding the company at the Securities and Exchange Commissions Internet site at www.sec.gov or by directing requests to: Granite Point Mortgage Trust Inc., 590 Madison Avenue, 38th floor, New York, NY 10022, telephone (212) 364-3200
Granite Point Mortgage Trust Inc.
Chief Financial Officer