NorthWest Healthcare gets approval to extend 2018 convertibles

By Wendy Van Sickle

Columbus, Ohio, Nov. 27 – NorthWest Healthcare Properties Real Estate Investment Trust received approval to amend the terms of the REIT's 2018 convertible debentures due Dec. 31, 2023, according to a news release.

Debenture holders were asked to vote in favor of the proposal at a meeting on Nov. 2, and the measure was adopted with approval of 89.24% of the principal amount of the debentures voted in person or by proxy.

The proposed amendments included: 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.

To become effective, approval from at least 66 2/3% of the principal amount of the debentures voted at the meeting was required.

A cash consent fee of C$20 per C$1,000 principal will be paid.

The record date was Oct. 13.

The REIT has engaged National Bank Financial as financial adviser.

“Northwest has eliminated all 2023 debt maturities, and over 60% of its 2024 debt maturities, giving the REIT added financial flexibility,” Craig Mitchell, Northwest’s chief executive officer, said in the release.

NorthWest Healthcare is a Toronto-based real estate investment trust.

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