By Sheri Kasprzak
New York, Dec. 15 - Whiterock Real Estate Investment Trust has concluded a C$25.32 million portion of its previously announced private placement.
The company issued 6,528,000 trust units at C$2.50 each and C$9 million in series B redeemable convertible debentures.
Blackmont Capital Inc. led a syndicate of underwriters placing the units and exercised a greenshoe for 128,000 trust units. The syndicate also included TD Securities Inc., Canaccord Capital Corp. and Desjardins Securities Inc.
The deal was first announced Dec. 8 as including 6.4 million trust units under the same terms. The terms of the debentures remain unchanged.
The debentures bear interest at 9% annually and mature in three years. Half of the debentures are convertible into trust units at C$3.00 each before the first anniversary of the closing; the other half will be convertible at C$3.00 each after the first anniversary.
The series B debentures are redeemable during the first year at C$3.25 each; at the issue price plus the greater of the 20-day weighted average price and C$3.25 less the conversion price for the 13th through the 30th month; and at the greater of the 20-day weighted average price at C$3.50 for the 31st through the 36th month.
On Dec. 20, the company anticipates closing another portion of the deal for C$3 million in 9% redeemable subordinated convertible series C debentures.
The series C debentures mature in five years, bear interest at 9% annually and are convertible into trust units at C$3.00 each.
The series C debentures are not redeemable in the first year. From months 13 through 30, the debentures are redeemable at the issue price, provided the 20-day weighted average price is at least C$3.25. From months 31 through 60, the debentures are redeemable at the issue price, provided the 20-day weighted average price is at least C$3.50.
Proceeds will be used to pay the cash portion of property acquisitions completed in November. The rest will be used for general corporate purposes.
Toronto-based Whiterock is a real estate investment trust focused on commercial and industrial assets.
Trust units
| Issuer: | Whiterock Real Estate Investment Trust
|
| Issue: | Trust units
|
| Amount: | C$16.32 million
|
| Units: | 6,528,000 (includes greenshoe for 128,000 trust units)
|
| Price: | C$2.50
|
| Warrants: | No
|
| Underwriters: | Blackmont Capital Inc. (lead), TD Securities Inc., Canaccord Capital Corp. and Desjardins Securities Inc.
|
| Pricing date: | Dec. 8
|
| Settlement date: | Dec. 15
|
| Stock price: | C$2.50 at close Dec. 7
|
| Stock price: | C$2.46 at close Dec. 14
|
|
|
| Debentures
|
| Issuer: | Whiterock Real Estate Investment Trust
|
| Issue: | Series B convertible debentures
|
| Amount: | C$9 million
|
| Maturity: | Three years
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Conversion price: | C$3.00
|
| Call: | Redeemable in the first year at C$3.25 each; at the issue price plus the greater of the 20-day weighted average price and C$3.25, less the conversion price for the 13th through the 30th month; and at the greater of the 20-day weighted average price at C$3.50 for the 31st through the 36th month
|
| Warrants: | No
|
| Pricing date: | Dec. 8
|
| Settlement date: | Dec. 15
|
| Stock price: | C$2.50 at close Dec. 7
|
| Stock price: | C$2.46 at close Dec. 14
|
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