BUZZ-EPR Properties shares rise after completing $500 million convertible bond issuance

November 12 - ** Experiential real estate investment trust (REIT) EPR Properties (EPR.N) shares rose 0.6% on Thursday to close at $59.71, after the company raised funds to pay down short-term debt

** The entertainment-focused real estate firm announced on Wednesday evening (link) the pricing of $500 million in convertible bonds (CBs) with a 4.5% coupon, maturing on February 15, 2032

** The conversion price of $68.29 represents a 15% premium over Wednesday's closing price of $59.38

** On Wednesday, ERP shares closed down 2.9% after the company launched (link) a tender offer to repay $450 million in principal of 4.75% senior notes due December 15, 2026

** The company plans to use $18.5 million of the funds raised to carry out a "capped call option transaction" to offset dilution effects up to a price of $80.16, a 35% premium over the previous day's closing price

** The company will also use approximately $50 million to repurchase shares from holders of the convertible bonds

** The stock is up 20% so far this year. By comparison, the S&P 400 Specialty REIT Index (.SPMDSPRI) and S&P 400 Real Estate Index (.SPMDCR) are both up around 7% in 2026

** According to LSEG data, the average rating among 13 analysts is "hold"; the median target price is $64

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