By Sheri Kasprzak
Atlanta, March 16 - Lanesborough Real Estate Investment Trust said it has wrapped up the C$8,431,000 second tranche of its previously announced overall C$12 million private placement.
The company sold subordinated series E convertible debentures to investors in Ontario, Manitoba, Alberta and British Columbia.
The debentures mature in five years, bear interest at 8% annually and are convertible into trust units after two years from closing at C$6.50 each in the third year, C$7.15 in the fourth year and C$7.90 in the fifth year.
The company closed the first tranche of the deal Feb. 15 for C$3,569,000.
Wellington West Capital Inc., Westwind Partners Inc. and Desjardins Securities Inc. were the placement agents.
Winnipeg-based Lanesborough is a real estate investment trust. The proceeds will be used to fund equity commitments associated with the acquisition of multi-family apartment buildings. The remainder will be used for general corporate purposes.
| Issuer: | Lanesborough Real Estate Investment Trust
|
| Issue: | Series E convertible debentures
|
| Amount: | C$8,431,000
|
| Maturity: | Five years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | C$6.50 in the third year, C$7.15 in the fourth year, C$7.90 in the fifth year
|
| Warrants: | No
|
| Placement agents: | Wellington West Capital Inc., Westwind Partners Inc. and Desjardins Securities Inc.
|
| Pricing date: | Jan. 27
|
| Settlement date: | March 16
|
| Stock price: | C$5.70 at close Jan. 27
|
| Stock price: | C$6.75 at close March 16
|
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