CorEnergy Infrastructure Trust, Inc., the Kansas City-based real estate investment trust that owns pipelines and storage terminals reports it has closed a previously announced offering of $120 million in senior notes.
The closing involved 5.875% convertible senior notes due 2025. The offering resulted in nearly $116 million net proceeds to CorEnergy after deducting the initial purchasers’ discount.
The Notes will be convertible at an initial conversion rate of 20.0000 shares of the Company’s common stock per $1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately $50.00 per share of the Company’s common stock.
CorEnergy will use a portion of the net proceeds from the offering of the Notes, together with shares of its common stock, to repurchase approximately $64 million aggregate principal amount of its 7.00% Convertible Senior Notes due 2020 in separate transactions that were negotiated concurrently with this offering.