Great Ajax Corp. Announces Pricing of Public Offering of Convertible Notes | Financial Buzz

Great Ajax Corp. Announces Pricing of Public Offering of Convertible Notes

Great Ajax Corp. (NYSE: AJX) (“Great Ajax” or the “Company”) today
announced that it priced an underwritten public offering of $15.9
million aggregate principal amount of its 7.25% Convertible Senior Notes
due 2024 (the “Notes”) at a price of $24.69. The Notes represent an
additional offering of the Company’s 7.25% Convertible Senior Notes due
2024, of which $108.0 million in aggregate principal amount were
previously issued. The Company intends to use the net proceeds from this
offering to acquire additional mortgage loans and mortgage-related
assets consistent with its investment strategy and for general corporate
purposes. Raymond James & Associates, Inc. and JMP Securities LLC served
as joint book-running managers for the public offering. The offering is
expected to close on November 19, 2017 and is subject to customary
closing conditions.

The expected gross proceeds are $15.7 million before underwriting
discounts and commissions and estimated offering expenses payable by the
Company. The Notes will pay interest quarterly at a rate of 7.25% per
annum and will mature on April 30, 2024. The Notes will have an initial
conversion rate of 1.6438 shares of the Company’s common stock per
$25.00 principal amount of the Notes. The conversion rate is subject to
adjustment upon the occurrence of certain events, but will not be
adjusted for any accrued and unpaid interest. During certain periods and
subject to certain conditions, the Notes will be convertible by holders
into shares of the Company’s common stock. Upon conversion, holders will
receive, at the Company’s discretion, cash, shares of the Company’s
common stock or a combination thereof.

The Company may redeem all or any portion of the Notes, at its option,
on or after April 30, 2022, subject to certain conditions, at a
redemption price payable in cash equal to 100% of the principal amount
of the Notes to be redeemed, plus accrued and unpaid interest.
Additionally, under certain conditions, holders may require the Company
to purchase the Notes for cash at a purchase price equal to 100% of the
principal amount of the Notes to be purchased, plus accrued and unpaid

A registration statement relating to the Notes has been declared
effective by the Securities and Exchange Commission (the “SEC”). The
offering was made only by means of a preliminary prospectus supplement
and accompanying prospectus, which have been filed with the SEC. A copy
of the prospectus supplement and accompanying prospectus may be obtained
free of charge at the SEC’s website at
or from the underwriters by contacting: Raymond James & Associates,
Inc., 880 Carillon Parkway, St. Petersburg, FL 33716, Attention: Equity
Syndicate (telephone: 800-248-8863 or email:,
or JMP Securities LLC, 600 Montgomery Street, Suite 1100, San Francisco,
CA 94111, Attention: Syndicate Department.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the Company’s securities, nor
shall there be any sale of the Company’s securities in any state in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such

About Great Ajax Corp.

Great Ajax Corp. is a Maryland corporation that is a real estate
investment trust, that focuses primarily on acquiring, investing in and
managing RPLs secured by single-family residences and, to a lesser
extent, NPLs. The Company also originates loans secured by multi-family
residential and smaller commercial mixed use retail/residential
properties, and invests in such properties directly. The Company is
externally managed by Thetis Asset Management LLC. The Company’s
mortgage loans and other real estate assets are serviced by Gregory
Funding LLC, an affiliated entity. Great Ajax has elected to be taxed as
a real estate investment trust under the Internal Revenue Code of 1986,
as amended.

Forward-Looking Statements

This press release contains certain forward-looking statements. Words
such as “believes,” “intends,” “expects,” “projects,” “anticipates,” and
“future” or similar expressions are intended to identify forward-looking
statements. These forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions, many of which
are beyond the control of the Company, including, without limitation,
the risk factors and other matters set forth in the prospectus
supplement and the accompanying prospectus and the Company’s Annual
Report on Form 10-K for the year ended December 31, 2017 filed with the
SEC and in its other filings with the SEC. The Company undertakes no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required by law.

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