Cominar greenshoe exercised, raising convertibles to C$115 million

By Marisa Wong

Milwaukee, Sept. 22 - Cominar Real Estate Investment Trust announced that the underwriters of its recent offering of 6.5% convertible unsecured subordinated debentures due Sept. 30, 2016 exercised the C$15 million over-allotment option, increasing the offering to C$115 million.

Cominar priced C$100 million of the seven-year convertibles on Sept. 1 to yield 6.5% with an initial 18% conversion premium.

The debentures were sold to a syndicate of underwriters led by National Bank Financial Inc. and BMO Capital Markets.

The debentures are convertible into units of Cominar at C$20.50 per unit and will be non-callable for three years, until Sept. 30, 2012, and then provisionally callable at a price hurdle of 125% for the next two years, as previously reported.

Proceeds from the sale of the debentures will be used to pay down debt outstanding under current credit facilities and to finance future acquisitions and developments.

Cominar is a Quebec City, Quebec, commercial property owner and manager.

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