Invesque asks holders of 5% convertibles to extend maturity, up rate

By Wendy Van Sickle

Columbus, Ohio, Sept. 27 – Invesque Inc. said it will seek approval from holders of its 5% convertible debentures due Jan. 31, 2022 to change the terms of the debentures, according to a news release.

Holders will be asked to vote on the proposed changes at a meeting at 10 a.m. ET on Nov. 2.

The changes include increasing the interest rate to 6.25%, effective Jan. 31, 2022, decreasing the conversion price to $6.00 from $11.00 per share, extending the maturity date to Jan. 31, 2025 from Jan. 31, 2022 and redeeming $10 million, or 22.23%, of the principal amount of the debentures on a pro rata basis on Jan. 31, 2022.

Other than the partial redemption in 2022, the debentures will not be redeemable prior to Jan. 31, 2024 and will thereafter be redeemable at par plus interest, provided that the market price of Invesque’s stock at that time is at least 125% of the $6.00 conversion price.

“Over the last several months, Invesque has made significant progress in solidifying its financial position, by reducing leverage and enhancing financial flexibility,” Scott White, chairman and chief executive officer of Invesque, said in the release. “While the operating environment continues to present challenges as we deal with Covid, we do see positive momentum in our operations.

“By extending the maturity of the debentures, Invesque would be provided financial flexibility to focus on key strategic, business, and operational targets that will drive the success of the corporation for all stakeholders. In addition, we believe that the debenture amendments will provide debentureholders with a longer period of time during which to receive, what we believe to be, an attractive yield.”

The company’s board of directors unanimously recommends debentureholders vote for the amendments.

In order to be approved, holders of at least two-thirds of the outstanding securities must vote in favor of the amendments in person or by proxy at the meeting.

The issuer is a Toronto-based health care real estate company.

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