Blackstone Mortgage Trust Unveils Public Offering

Blackstone Mortgage Trust fell 2% in Monday’s pre-market trading after the real estate investment trust said it has commenced an underwritten public offering of $250 million aggregate principal amount of convertible senior notes due 2022.The underwriters will be granted a 30-day option by the company to purchase up to an additional $37.5 million aggregate principal amount of the Notes solely to cover over-allotments.

Blackstone intends to use the net proceeds from the offering to originate and purchase additional commercial mortgage loans and other target assets and investments consistent with its investment strategies and investment guidelines, and for working capital and other general corporate purposes, including repayment of indebtedness.

The notes will mature on May 1, 2022. Prior to Feb. 1, 2022, the notes will be convertible only upon certain circumstances and during certain periods, and thereafter will be convertible at any time prior to the close of business on the second scheduled trading day prior to maturity.

By Bucky Rini