By Rebecca Melvin
New York, May 28 - Canada's Extendicare Real Estate Investment Trust priced, on a bought-deal basis, C$80 million of five-year convertible unsecured subordinated debentures to yield 7.25% with an initial conversion premium of 17%, according to a company news release.
Concurrently the company priced about C$30 million trust units at $9.70 per unit.
There is also an option to purchase up to an additional C$12 million of debentures and 465,000 trust units.
Extendicare REIT agreed to sell the securities to a syndicate of underwriters led by CIBC World Markets Inc. and including TD Securities Inc., RBC Capital Markets, National Bank Financial Inc., BMO Capital Markets and Versant Partners Inc.
The debentures are non-callable for three years and are provisionally callable thereafter at a hurdle of 125% of the conversion price.
Proceeds will be used to fund internal growth projects under development and to repay amounts outstanding on Extendicare Health Services, Inc.'s revolving line of credit, which arose principally from acquisitions completed last fall.
Markham, Ont.-based Extendicare is a provider of long-term care and related services.
| Issuer: | Extendicare Real Estate Investment Trust
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$80 million
|
| Greenshoe: | C$12 million
|
| Maturity: | June 30, 2013
|
| Bookrunners: | CIBC World Markets Inc. and including TD Securities Inc., RBC Capital Markets, National Bank Financial Inc., BMO Capital Markets and Versant Partners Inc.
|
| Coupon: | 7.25%
|
| Price: | Par
|
| Yield: | 7.25%
|
| Conversion premium: | 17%
|
| Conversion price: | C$11.35
|
| Pricing date: | May 28
|
| Concurrent offering: | C$30 million trust units at C$9.70 per unit
|
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