By Kenneth Lim
Boston, April 13 - Canada's Westfield Real Estate Investment Trust has priced C$30 million of seven-year convertible unsecured subordinated debentures at a coupon of 6.25% and an initial conversion premium of 13.5%.
The convertibles, which were offered at par, mature on May 31, 2013 and have an initial conversion price of C$17.25. Westfield units closed at C$15.20 on the Toronto Stock Exchange on Wednesday, the latest closing price for the common stock before the convertibles priced.
Canaccord Capital led the deal with CIBC World Markets, National Bank Financial, Scotia Capital, Bieber Securities and Westwind Partners also in the syndicate.
The debentures are non-callable for the first three years. They are callable after that only if the common stock trades above 125% of the conversion price. There are no puts.
Westfield said it will seek to list the securities in Toronto.
Westfield is a closed-end real estate investment trust with assets in Western Canada. It currently trades on the TSX Venture Exchange, but shifts to the main exchange on Monday, April 17.
The Reit said it will use proceeds from the offering to fund acquisitions and for general working capital.
| Issuer: | Westfield Real Estate Investment Trust
|
| Issue: | Convertible unsecured subordinated debentures
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| Managers: | Canaccord Capital (lead), CIBC World Markets, National Bank Financial, Scotia Capital, Bieber Securities, Westwind Partners
|
| Amount: | C$30 million
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| Maturity: | May 31, 2013
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| Coupon: | 6.25%
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| Price: | Par
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| Yield: | 6.25%
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| Conversion premium: | 13.5%
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| Conversion price: | C$17.25
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| Call protection: | Non-callable for 3 years, thereafter callable subject to 125% hurdle
|
| Puts: | None
|
| Pricing date: | April 13
|
| Listing: | Toronto Stock Exchange
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