Tarragon note sale

Real Estate Weekly, Dec 1, 2004

Tarragon Corporation announced that it has completed the sale of an additional $12 million principal amount of 8.00 percent senior convertible notes due 2009 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended at 101-1/2 plus accrued interest in which Lazard Freres & Co. LLC acted as initial purchaser.

In September, the company sold an aggregate of $50 million of identical notes, which will be treated as a single class with the notes currently being offered.

The convertible notes are senior unsecured obligations of the company, convertible into shares of the company's common stock at a conversion price of $18.36 per share, subject to adjustment on the occurrence of certain events. The net proceeds from the offering will be used for the repayment of certain outstanding indebtedness and for general corporate purposes, including acquisitions and investments in joint ventures.