LTC Properties signs equity distribution agreement for issuer share forward sales
LTC•Share delivery cap
The structure caps aggregate share delivery at 1.5 times the trade-date number of shares for each transaction.
Settlement and early valuation terms
Settlement can be physical, cash, or net share, with physical settlement as the default; the dealer can force physical settlement if the stock drops below a threshold.
The dealer can trigger early valuation on specified disruption events, including hedging events, extraordinary dividends, or other ISDA events.
Equity distribution agreement supports forward sales
LTC Properties launched an equity distribution agreement that supports issuer share forward sale transactions tied to sales of LTC common stock.
The program uses a dealer-led forward hedge selling period, with the initial forward price set from the volume-weighted hedge price minus commission.
