Extendicare REIT greenshoe fully exercised, lifts 7.25% five-year convertible debentures to C$92 million

By Devika Patel

Knoxville, Tenn., June 19 - Underwriters for Canada's Extendicare Real Estate Investment Trust's 7.25% five-year convertible unsecured subordinated debentures exercised their over-allotment option in full for C$12 million more of the notes, increasing the size of the issue to C$92 million, the company said in a press release.

As previously reported, Extendicare REIT agreed to sell the debentures 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 had an initial conversion premium of 17% and have a conversion price of C$11.35.

They 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.

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