By Rebecca Melvin
New York, Dec. 18 - Cominar Real Estate Investment Trust priced C$75 million of 7.5-year unsecured subordinated convertible debentures on a bought-deal basis to yield 5.75% with an initial conversion premium of 30%, according to a news release.
There is a 15% greenshoe for an additional C$11.25 million of debentures.
The offering is being made via a syndicate of underwriters led by National Bank Financial Inc. and BMO Capital Markets.
Proceeds from the offering will be used to pay down current credit facilities, which were used to finance Cominar's ongoing acquisition and development pipeline, and will be used to finance future acquisitions and developments.
Closing is expected by Jan. 12, and the debentures will mature June 30, 2017.
The debentures are non-callable until June 30, 2013 and then provisionally callable for two years until June 30, 2015 if the volume weighted average trading price of the units is not less than 125% of conversion.
Holders will be able to convert at a conversion price of C$25 per unit, being a ratio of about 40.000 units per C$1,000 principal amount of debentures.
Subject to regulatory approval, the company plans to satisfy principal, on redemption or at maturity, by delivering that number of units equal to the amount due divided by 95% of the market price for the units at that time, plus accrued interest in cash.
Quebec City-based Cominar is a commercial property owner and manager.
| Issuer: | Cominar Real Estate Investment Trust
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$75 million
|
| Greenshoe: | C$11.25 million
|
| Maturity: | June 30, 2017
|
| Bookrunners: | National Bank Financial Inc. and BMO Capital Markets
|
| Coupon: | 5.75%
|
| Price: | Par, C$1,000
|
| Yield: | 5.75%
|
| Conversion premium: | 30%
|
| Conversion price: | C$25 per unit
|
| Conversion ratio: | 40.000
|
| Call feature: | Non-callable until June 30, 2013, then provisionally callable until June 30, 2015 if VWAP of units is not less than 125% of conversion price
|
| Pricing date: | Dec. 18
|
| Settlement date: | Jan. 12
|
| Distribution: | Short form prospectus in Canada, Regulation S
|
| Stock listing: | Toronto: CUF.UN
|
| Stock reference: | C$19.26
|
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