By Stephanie N. Rotondo
Seattle, Dec. 8 – Morguard Real Estate Investment Trust priced a C$175 million bought-deal offering of 4.5% convertible unsecured subordinated debentures due Dec. 31, 2021, according to a press release on Thursday.
RBC Capital Markets and TD Securities Inc. are leading the deal.
Morguard Corp. has agreed to purchase C$50 million of the debentures.
There is a C$26.25 million over-allotment option.
The paper is convertible into trust units at C$20.40 per unit, representing a 40% premium over Thursday’s closing share price of C$14.55.
Proceeds will be used to fund the redemption of the 4.85% convertible unsecured subordinated debentures due Oct. 31, 2017.
The issue became callable on Nov. 1.
Any remaining funds will be used for debt repayment, for future acquisitions and for general trust purposes.
Morguard is based in Toronto.
| Issuer: | Morguard Real Estate Investment Trust
|
| Securities: | Convertible unsecured subordinated debentures
|
| Amount: | C$175 million
|
| Greenshoe: | C$26.25 million
|
| Maturity: | Dec. 31, 2021
|
| Bookrunners: | RBC Capital Markets, TD Securities Inc.
|
| Coupon: | 4.5%
|
| Conversion premium: | 40%
|
| Conversion price: | C$20.40 per unit
|
| Pricing date: | Dec. 8
|
| Settlement date: | Dec. 30
|
| Stock symbol: | TSX: MRT
|
| Stock price: | C$14.55
|
| Market capitalization: | C$881.28 million
|
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