CTO Realty Growth's Strategic Moves with Convertible Notes
CTO Realty Growth's Recent Financial Maneuvers
CTO Realty Growth, Inc. (NYSE: CTO) is making significant strides in its financial strategy with the recent announcement of negotiated exchanges involving their convertible senior notes. This major step showcases the company's efforts to manage its capital effectively and adapt to changing market conditions.
Details on the Exchange Agreements
The company revealed that it entered into privately negotiated agreements with select holders of its 3.875% Convertible Senior Notes. Originally, these notes had a total principal of $51.0 million, corresponding to approximately 3.8 million shares based on the current conversion ratio of 73.8112 shares per $1,000 of notes.
Highlights of the Transaction
Under the new agreements, CTO Realty Growth exchanged $35.2 million of these notes for the issuance of 1,089,555 new shares of common stock. Additionally, the transaction included the distribution of $29.0 million in cash, which encompasses $0.6 million in accrued interest. With this distribution, the total outstanding common shares of CTO has risen to 32,936,967.
Remaining Notes and Future Expectations
Following this exchange, $15.8 million of the original notes remain. The company anticipates a cash settlement for these notes, estimated at around $22 million, to occur on the maturity date. Importantly, this estimate may fluctuate based on the conversion ratio and the weighted average price of CTO’s common stock during the settlement period.
Investment Strategy and Management
Truist Securities and ICR Capital LLC are advising CTO Realty Growth on these financial transactions, guiding the company towards a more robust investment strategy. Their expertise is pivotal as CTO navigates the complexities of the market and seeks opportunities for growth.
About CTO Realty Growth, Inc.
CTO Realty Growth is dedicated to owning and operating high-quality, open-air shopping centers primarily located in the Southeast and Southwest regions of the United States. Additionally, the company plays a significant role in managing and holding a substantial interest in Alpine Income Property Trust, Inc. (NYSE: PINE), further diversifying its portfolio.
Investor Resources
The company encourages stakeholders to stay updated by reviewing its latest investor presentation and supplemental financial information, which is readily available on their official website. Engaging with these resources provides insight into the company's strategic vision and financial health.
Frequently Asked Questions
What was the reason for the exchange agreements?
The exchange agreements were part of CTO Realty Growth's strategy to manage its convertible senior notes and optimize its capital structure.
How much of the convertible notes remain after the exchange?
After the exchange, $15.8 million of the convertible notes remain outstanding and are set for cash settlement on their maturity date.
What impact will this have on CTO’s stock?
The recent exchanges may lead to increased stock liquidity and reflect positively on the company’s financial management, potentially affecting share price positively.
Who advised CTO Realty Growth on these transactions?
CTO Realty Growth enlisted the services of Truist Securities and ICR Capital LLC to assist with the financial aspects of the transactions.
Where can I find more information about CTO Realty Growth?
More information, including the latest presentations and financial data, can be found on CTO Realty Growth's official website.
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