By Angela McDaniels
Tacoma, Wash., July 10 - Tricon Capital Group Inc. said a syndicate of underwriters agreed to purchase C$45 million of 6.375% convertible subordinated debentures due Aug. 31, 2017 from it on a bought-deal basis. The price per convertible debenture is C$1,000.
The syndicate is co-led by GMP Securities LP and RBC Capital Markets and includes CIBC World Markets Inc., Canaccord Genuity Corp. and Raymond James Ltd., according to a company news release.
The offering has a C$6.75 million over-allotments option.
The conversion price is C$6.00 per common share. This is a 38.2% premium to the company's C$4.34 closing share price on July 9.
Beginning Aug. 31, 2015 and prior to Aug. 31, 2016, Tricon may redeem the convertibles at par if the weighted average trading price of its common shares during a specified period prior to redemption is at least 125% of the conversion price. Beginning Aug. 31, 2016, the convertibles are redeemable at par at any time.
Subject to some conditions, Tricon can repay the convertibles at maturity or upon redemption in shares. It also has the option to pay interest in the form of shares and, subject to the prior agreement of the holders, to settle conversions in cash instead of shares.
The offering is expected to close July 30.
The proceeds will be used to fund the continued expansion of the company's U.S. single-family home rental strategy and for general corporate and working capital purposes.
Tricon is a residential real estate investment company based in Toronto.
| Issuer: | Tricon Capital Group Inc.
|
| Issue: | Convertible subordinated debentures
|
| Amount: | C$45 million
|
| Price: | C$1,000
|
| Greenshoe: | C$6.75 million
|
| Maturity; | Aug. 31, 2017
|
| Coupon: | 6.375%
|
| Conversion price: | C$6.00
|
| Conversion premium: | 38.2%
|
| Conversion ratio: | 166.667
|
| Call option: | At par from Aug. 31, 2015 up to but excluding Aug. 31, 2016 subject to 125% price hurdle; freely callable beginning Aug. 31, 2016
|
| Agents: | GMP Securities LP and RBC Capital Markets (leads), CIBC World Markets Inc., Canaccord Genuity Corp. and Raymond James Ltd.
|
| Pricing date: | July 10
|
| Settlement date: | July 30
|
| Stock symbol: | Toronto: TCN
|
| Stock price: | C$4.34 at close July 9
|
| Market capitalization: | C$137.14 million
|
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