By Rebecca Melvin
New York, Oct. 16 - Morguard Real Estate Investment Trust priced C$150 million of five-year convertible debentures on a bought deal basis at par to yield 4.85% with an initial conversion premium of 38%, according to a company news release.
The offering was bought by a syndicate of underwriters co-led by RBC Capital Markets and TD Securities Inc.
The convertible unsecured subordinated debentures will be convertible at the holder's option into trust units at C$24.60 per share.
As part of the transaction, Morguard has agreed to purchase about C$50 million of the debentures.
Proceeds will be used to fund an acquisition currently under negotiation, to fund future acquisitions, for debt repayment and for general trust purposes.
The offering will be sold in all the provinces of Canada except Quebec.
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 debentures
|
| Amount: | C$150 million
|
| Maturity: | Oct. 31, 2017
|
| Underwriters: | RBC Capital Markets, TD Securities Inc.
|
| Coupon: | 4.85%
|
| Price: | Par
|
| Yield: | 4.85%
|
| Conversion premium: | 38%
|
| Conversion price: | C$24.60
|
| Settlement date: | Oct. 31
|
| Stock symbol: | Toronto: MRT.UN
|
| Stock price: | C$17.82 at close Oct. 16
|
| Distribution: | Short form prospectus in Canadian provinces except Quebec
|
| Market capitalization: | C$1.08 billion
|
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