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CTO Realty Growth Announces Partial Extinguishment of 3.875% Convertible Senior Notes

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CTO Realty Growth (NYSE: CTO) has announced the partial extinguishment of its 3.875% Convertible Senior Notes due April 15, 2025. The company has entered into privately negotiated exchange agreements to convert $35.2 million of the Notes into 1,089,555 newly issued common shares and $29.0 million in cash, including $0.6 million in accrued interest.

Prior to the exchange, the Notes had an aggregate principal amount of $51.0 million, representing approximately 3.8 million underlying shares. Following the transaction, $15.8 million in Notes remain outstanding, scheduled for cash settlement at maturity. CTO estimates the final cash settlement to be around $22 million, though the actual amount will depend on the conversion ratio and volume weighted average stock price during the settlement period.

The exchange was executed under Section 4(a)(2) of the Securities Act of 1933, with Truist Securities and ICR Capital serving as financial advisors. After this transaction, CTO's total outstanding common shares stand at 32,936,967 as of April 3, 2025.

CTO Realty Growth (NYSE: CTO) ha annunciato l'estinzione parziale delle sue Note Convertibili Senior con un tasso del 3,875% in scadenza il 15 aprile 2025. L'azienda ha stipulato accordi di scambio privatamente negoziati per convertire 35,2 milioni di dollari delle Note in 1.089.555 nuove azioni ordinarie e 29,0 milioni di dollari in contante, inclusi 0,6 milioni di dollari di interessi maturati.

Prima dello scambio, le Note avevano un importo principale aggregato di 51,0 milioni di dollari, corrispondente a circa 3,8 milioni di azioni sottostanti. A seguito della transazione, rimangono in circolazione 15,8 milioni di dollari in Note, programmate per un regolamento in contante alla scadenza. CTO stima che il regolamento finale in contante sarà di circa 22 milioni di dollari, anche se l'importo effettivo dipenderà dal rapporto di conversione e dal prezzo medio ponderato delle azioni durante il periodo di regolamento.

Lo scambio è stato eseguito ai sensi della Sezione 4(a)(2) del Securities Act del 1933, con Truist Securities e ICR Capital che hanno svolto il ruolo di consulenti finanziari. Dopo questa transazione, il numero totale di azioni ordinarie in circolazione di CTO è di 32.936.967 al 3 aprile 2025.

CTO Realty Growth (NYSE: CTO) ha anunciado la extinción parcial de sus Notas Senior Convertibles al 3,875% con vencimiento el 15 de abril de 2025. La compañía ha celebrado acuerdos de intercambio negociados en privado para convertir 35,2 millones de dólares de las Notas en 1.089.555 nuevas acciones ordinarias y 29,0 millones de dólares en efectivo, incluidos 0,6 millones de dólares en intereses acumulados.

Antes del intercambio, las Notas tenían un monto principal agregado de 51,0 millones de dólares, lo que representa aproximadamente 3,8 millones de acciones subyacentes. Tras la transacción, quedan 15,8 millones de dólares en Notas pendientes, programadas para liquidación en efectivo al vencimiento. CTO estima que la liquidación final en efectivo será de alrededor de 22 millones de dólares, aunque el monto real dependerá de la relación de conversión y el precio promedio ponderado de las acciones durante el período de liquidación.

El intercambio se ejecutó bajo la Sección 4(a)(2) de la Ley de Valores de 1933, con Truist Securities e ICR Capital actuando como asesores financieros. Después de esta transacción, el total de acciones ordinarias en circulación de CTO asciende a 32.936.967 a partir del 3 de abril de 2025.

CTO Realty Growth (NYSE: CTO)는 2025년 4월 15일 만기 예정인 3.875% 전환 선순위 채권의 부분적인 소멸을 발표했습니다. 이 회사는 3,520만 달러의 채권을 1,089,555주로 새로 발행된 보통주와 2,900만 달러의 현금으로 전환하기 위해 사적으로 협상된 교환 계약을 체결했습니다. 여기에는 60만 달러의 이자가 포함됩니다.

교환 이전에, 채권의 총 원금은 5,100만 달러였으며, 이는 약 380만 주의 기초 주식을 나타냅니다. 거래 이후, 1,580만 달러의 채권이 남아 있으며, 만기 시 현금 정산이 예정되어 있습니다. CTO는 최종 현금 정산이 약 2,200만 달러가 될 것으로 예상하지만, 실제 금액은 전환 비율과 정산 기간 동안의 가중 평균 주가에 따라 달라질 것입니다.

이번 교환은 1933년 증권법 제4(a)(2)조에 따라 실행되었으며, Truist Securities와 ICR Capital이 재무 자문 역할을 했습니다. 이번 거래 이후 CTO의 총 발행 보통주 수는 2025년 4월 3일 기준으로 32,936,967주입니다.

CTO Realty Growth (NYSE: CTO) a annoncé l'extinction partielle de ses Obligations Senior Convertibles à 3,875% arrivant à échéance le 15 avril 2025. L'entreprise a conclu des accords d'échange négociés en privé pour convertir 35,2 millions de dollars des Obligations en 1.089.555 nouvelles actions ordinaires et 29,0 millions de dollars en espèces, y compris 0,6 million de dollars d'intérêts courus.

Avant l'échange, les Obligations avaient un montant principal total de 51,0 millions de dollars, représentant environ 3,8 millions d'actions sous-jacentes. Suite à la transaction, 15,8 millions de dollars d'Obligations restent en circulation, prévues pour un règlement en espèces à l'échéance. CTO estime que le règlement final en espèces sera d'environ 22 millions de dollars, bien que le montant réel dépendra du ratio de conversion et du prix moyen pondéré des actions pendant la période de règlement.

L'échange a été exécuté en vertu de la Section 4(a)(2) de la Securities Act de 1933, avec Truist Securities et ICR Capital agissant en tant que conseillers financiers. Après cette transaction, le nombre total d'actions ordinaires en circulation de CTO s'élève à 32.936.967 au 3 avril 2025.

CTO Realty Growth (NYSE: CTO) hat die teilweise Tilgung seiner 3,875% wandelbaren Senior Notes mit Fälligkeit am 15. April 2025 bekannt gegeben. Das Unternehmen hat privat verhandelte Austauschvereinbarungen getroffen, um 35,2 Millionen Dollar der Notes in 1.089.555 neu ausgegebene Stammaktien und 29,0 Millionen Dollar in bar, einschließlich 0,6 Millionen Dollar an aufgelaufenen Zinsen, umzuwandeln.

Vor dem Austausch hatten die Notes einen aggregierten Nennbetrag von 51,0 Millionen Dollar, was ungefähr 3,8 Millionen zugrunde liegenden Aktien entspricht. Nach der Transaktion bleiben 15,8 Millionen Dollar an Notes ausstehend, die zum Fälligkeitszeitpunkt in bar abgerechnet werden sollen. CTO schätzt die endgültige Barabwicklung auf etwa 22 Millionen Dollar, wobei der tatsächliche Betrag von dem Umwandlungsverhältnis und dem volumenweighted durchschnittlichen Aktienkurs während des Abrechnungszeitraums abhängt.

Der Austausch wurde gemäß Section 4(a)(2) des Securities Act von 1933 durchgeführt, wobei Truist Securities und ICR Capital als Finanzberater fungierten. Nach dieser Transaktion beträgt die Gesamtzahl der ausstehenden Stammaktien von CTO zum 3. April 2025 32.936.967.

Positive
  • Reduction of debt liability from $51.0M to $15.8M through partial note extinguishment
  • Strategic debt restructuring ahead of April 2025 maturity
  • Demonstrates financial flexibility in managing debt obligations
Negative
  • Significant cash outlay of $29.0M required for the exchange
  • Dilution of existing shareholders through issuance of 1,089,555 new shares
  • Additional $22M cash payment estimated for remaining notes at maturity

Insights

CTO Realty Growth's partial debt extinguishment represents a strategic balance sheet management move ahead of the April 15th maturity of its convertible notes. The company has exchanged $35.2 million of its $51.0 million 3.875% Convertible Senior Notes for a combination of 1,089,555 newly issued shares and $29.0 million in cash.

This transaction effectively accelerates the partial conversion of these notes while managing the timing of cash outflows. The remaining $15.8 million in notes will require an estimated $22 million cash settlement at maturity, meaning the total cash commitment for these notes is around $51 million ($29 million now plus $22 million in April).

While this exchange creates approximately 3.3% dilution to existing shareholders (adding 1.09 million shares to the 31.85 million previously outstanding), it eliminates uncertainty around potential future dilution. The company is essentially trading some equity dilution now for improved debt maturity management, which can enhance financial flexibility.

This transaction appears to be part of normal capital structure management rather than signaling any financial stress. For a company with a market cap of $614.9 million, handling this $51 million maturity through a combination of equity and staged cash payments represents prudent financial stewardship that balances shareholder interests with debt obligations.

WINTER PARK, Fla., April 03, 2025 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) announced today that the Company entered into privately negotiated exchange agreements with certain holders of its 3.875% Convertible Senior Notes due April 15, 2025 (the “Notes”). Prior to the exchange agreements, the Notes had an aggregate principal amount of $51.0 million, representing approximately 3.8 million underlying shares based on the current conversion ratio of 73.8112 shares of CTO common stock per $1,000 principal amount of the Notes.

In accordance with the terms of the exchange agreements, the Company exchanged $35.2 million aggregate principal amount of the Notes for 1,089,555 of newly issued shares of its common stock and $29.0 million in cash, including $0.6 million representing accrued interest. Including these common shares, CTO has 32,936,967 common shares outstanding as of April 3, 2025.

After the closing of these exchange agreements, $15.8 million aggregate principal amount of the Notes remains outstanding and is scheduled to be settled in cash on the maturity date of April 15, 2025. The Company estimates the cash settlement for the remaining principal amount of the Notes to be approximately $22 million. However, the final settlement amount will be computed based on the conversion ratio and volume weighted average price of CTO’s common stock over the settlement period, as defined in the indenture related to the Notes, and may differ from this estimate.

The exchanges are being made pursuant to an exemption from registration provided in Section 4(a)(2) of the Securities Act of 1933, as amended. This press release does not constitute an offer to exchange the Notes for common stock or other securities of the Company.

Truist Securities and ICR Capital LLC acted as the Company’s financial advisors.

About CTO Realty Growth, Inc.

CTO Realty Growth, Inc. owns and operates high-quality, open-air shopping centers located in the higher growth Southeast and Southwest markets of the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE).

We encourage you to review our most recent investor presentation and supplemental financial information, which is available on our website at www.ctoreit.com.

Safe Harbor

Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can typically be identified by words such as “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions, as well as variations or negatives of these words. Examples of forward-looking statements in this press release include, without limitation, statements regarding the Company’s estimate of the cash settlement amount for the remaining principal amount of the Notes.

Although forward-looking statements are made based upon management’s present expectations and beliefs concerning future developments and their potential effect upon the Company, a number of factors could cause the Company’s actual results to differ materially from those set forth in the forward-looking statements. Such factors may include, but are not limited to: the Company’s ability to remain qualified as a REIT; the Company’s exposure to U.S. federal and state income tax law changes, including changes to the REIT requirements; general adverse economic and real estate conditions; macroeconomic and geopolitical factors, including but not limited to inflationary pressures, interest rate volatility, tariffs, distress in the banking sector, global supply chain disruptions, and ongoing geopolitical war; credit risk associated with the Company investing in structured investments; the ultimate geographic spread, severity and duration of pandemics, actions that may be taken by governmental authorities to contain or address the impact of such pandemics, and the potential negative impacts of such pandemics on the global economy and the Company’s financial condition and results of operations; the inability of major tenants to continue paying their rent or obligations due to bankruptcy, insolvency or a general downturn in their business; the loss or failure, or decline in the business or assets of PINE; the completion of 1031 exchange transactions; the availability of investment properties that meet the Company’s investment goals and criteria; the uncertainties associated with obtaining required governmental permits and satisfying other closing conditions for planned acquisitions and sales; and the uncertainties and risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission.

There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.

Contact:
Investor Relations
ir@ctoreit.com


FAQ

What is the remaining principal amount of CTO's convertible notes after the partial extinguishment?

$15.8 million in convertible notes remain outstanding, due for settlement on April 15, 2025.

How many new common shares did CTO issue in the notes exchange?

CTO issued 1,089,555 new common shares as part of the exchange agreement.

What is the estimated cash settlement for CTO's remaining convertible notes?

CTO estimates approximately $22 million for the final cash settlement, subject to conversion ratio and stock price calculations.

How much cash did CTO pay in the convertible notes exchange?

CTO paid $29.0 million in cash, including $0.6 million in accrued interest.

What is CTO's total number of outstanding shares after the notes exchange?

32,936,967 common shares are outstanding as of April 3, 2025.
Cto Realty Growth Inc

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589.09M
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