By Rebecca Melvin
New York, Aug. 31 - Morguard Real Estate Investment Trust has priced C$75 million of five-year convertibles on a bought-deal basis at par to yield 6.5% with an initial conversion premium of 17%, according to a news release.
The issue is being made via a syndicate of underwriters co-led by TD Securities Inc. and RBC Capital Markets Corp.
There is an over-allotment option to purchase up to an additional C$11.25 million of debentures.
Proceeds will be used, in part, to reduce outstanding debt incurred under the REIT's general operating facility, to fund future acquisitions and for general trust purposes.
The debentures, which mature Sept. 30, 2014, are convertible into trust units of Morguard at $14.00 per trust unit.
The offering is expected to close Sept. 22 and is subject to normal regulatory approvals.
Based in Mississauga, Ont., Morguard REIT is a closed end trust engaged in ownership, development, operation and management of Canadian real estate.
| Issuer: | Morguard Real Estate Investment Trust
|
| Issue: | Convertible unsecured subordinated debentures
|
| Joint lead managers: | TD Securities Inc. and RBC Capital Markets Corp.
|
| Amount: | C$75 million
|
| Greenshoe: | C$11.25 million
|
| Maturity: | Sept. 30, 2014
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion premium: | 17%
|
| Conversion price: | $14.00
|
| Pricing date: | Aug. 31
|
| Settlement date: | Sept. 22
|
| Distribution: | Public offering
|
| Stock symbol: | TSX: MRT.UN
|
| Stock reference price: | $11.95
|
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