BUZZ-Essential Properties shares fall due to $450 million convertible bond issuance

October 28 - ** After successfully completing a financing, shares of Essential Properties Realty Trust (EPRT.N) fell 1.4% in pre-market trading to $26.48

** This commercial net lease real estate investment trust announced on Tuesday evening (link) the pricing of $450 million in convertible bonds with a coupon rate of 4.375%, maturing on January 15, 2032

** The exchange price of $30.88 represents a 15% premium over the last traded price of $26.85

** On Tuesday, Princeton, New Jersey-based EPRT announced (link) it was issuing the bonds to repay its revolving credit facility, and its shares closed down 1.2%

** The company plans to use about $18.7 million of net proceeds to pay for capped call transactions; the cap price is $36.25, 35% higher than the previous day's closing price

** As of Tuesday, the stock was down 9.5% year-to-date, underperforming the S&P 600 REIT index's approximately 10% gain .SPSMCREC

** According to the latest Reuters data, the average rating from 17 analysts is “buy”; the median target price is $33, down from $37 a month ago

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