By Sheri Kasprzak
New York, Oct. 26 - Westfield Real Estate Investment Trust said it has priced its previously announced private placement for C$35 million.
The company intends to sell up to 33,333,333 trust units at C$0.75 each and up to C$10 million in convertible debentures.
The five-year debentures bear interest at 7.5% annually and are convertible into trust units at $0.90 each.
The debentures are redeemable any time after the second anniversary of closing, provided the market price of Westfield's trust units exceeds 150% of the conversion price, or any time after the fourth anniversary, assuming the market price of the company's trust units exceeds 125% of the conversion price.
The company had initially planned to raise C$65 million from the offering, first announced without pricing details on Sept. 28, but has since scaled back its financing efforts. The offering first included up to C$50 million in trust units and up to C$15 million in convertible debentures.
Placement agent Canaccord Capital Corp. has an over-allotment option for up to C$5 million in trust units and up to C$5 million in principal of debentures.
The deal is expected to close on Nov. 9.
Proceeds will be used to partially fund the company's acquisition of 27 properties. The rest will be used for working capital.
Based in Winnipeg, Man., Westfield is a real estate investment trust focused on acquiring retail and residential properties.
| Issuer: | Westfield Real Estate Investment Trust
|
| Issue: | Trust units and convertible debentures
|
| Amount: | C$35 million (maximum)
|
| Placement agent: | Canaccord Capital Corp.
|
| Pricing date: | Oct. 26
|
| Settlement date: | Nov. 9
|
| Stock price: | C$0.80 at close Oct. 26
|
|
|
| Trust units
|
| Amount: | C$25 million (maximum)
|
| Greenshoe: | For up to C$5 million
|
| Units: | 33,333,333 (maximum)
|
| Price: | C$0.75
|
| Warrants: | No
|
|
|
| Debentures
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| Amount: | C$10 million (maximum)
|
| Greenshoe: | For up to C$5 million
|
| Maturity: | Five years
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion price: | C$0.90
|
| Call: | Redeemable after second anniversary if market price of units exceeds 150% of conversion price; redeemable after fourth anniversary if market price of units exceeds 125% of conversion price
|
| Warrants: | No
|
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