Canada's Cominar greenshoe exercised in full, lifts debentures to C$80.5 million

By Jennifer Chiou

New York, May 8 - Canada's Cominar Real Estate Investment Trust said that its C$10.5 million greenshoe was fully exercised, lifting its issue of 5.7% convertible subordinated unsecured debentures to C$80.5 million.

On April 16, the company priced C$70 million of the 71/2-year convertibles with an initial conversion premium of 15%

As already announced, the convertibles were offered at par.

National Bank Financial Inc. was the lead underwriter for the Regulation S offering.

The debentures are non-callable for the first three years with a call hurdle at 125% of the conversion price in years four and five. The debentures are freely callable after that.

There are no puts.

The company also closed on an offering of 7.113 million subscription receipts for its common stock at C$23.90 apiece.

Cominar, a Vanier, Quebec-based real estate investment trust with a portfolio of office, retail and industrial properties in the Quebec City and Montreal areas, said the proceeds of the deal will be used to reduce outstanding debt and for general purposes.

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