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NorthWest Healthcare seeks approval to extend 2018 convertibles
By Mary-Katherine Stinson
Lexington, Ky., Oct. 16 – NorthWest Healthcare Properties Real Estate Investment Trust will seek approval to amend the terms of the REIT's 2018 convertible debentures due Dec. 31, 2023, according to a news release.
Debenture holders will be asked to vote in favor of the proposal at a meeting on Nov. 27.
The proposed debenture amendments include: extending the maturity date to March 31, 2025; revising the interest rate to 10% annually effective Dec. 31 and decreasing the conversion price to C$7.25 per trust unit.
Holders of approximately 24% of the outstanding debentures have signed voting support agreements to vote in favor of the proposed amendments.
To become effective, approval from at least 66 2/3% of the principal amount of the debentures voted at the meeting is required. Alternatively, the amendments will also be approved without a meeting if approval from at least 66 2/3% is gained via an affirmative vote by proxy or voting instruction form before the meeting.
A cash consent fee of C$20 per C$1,000 principal will be paid.
The record date is Oct. 13.
The REIT has engaged National Bank Financial as financial adviser.
Strategic review
The proposed amendments mandate is distinct from the broader strategic review process underway.
As previously reported, on Aug. 8, NorthWest announced it had formed a committee of its board to undertake a broad-based strategic review to explore, among other strategic initiatives, transactions involving the potential sale of all or part of NorthWest's U.S. and/or Brazil property portfolios.
NorthWest Healthcare is a Toronto-based real estate investment trust.
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