Timbercreek partial greenshoe ups 5.4% convertibles to C$45.8 million

By Susanna Moon

Chicago, Aug. 5 – Timbercreek Financial Corp. underwriters exercised C$5.8 million of the over-allotment option on its 5.4% convertible subordinated debentures due July 31, 2021, bringing the total deal size to C$45.8 million.

Proceeds of the greenshoe exercise will be used to repay debt under the company’s secured revolving credit facility and then the company will draw on the facility to fund future mortgage loans, according to a company update.

As previously reported, Timbercreek sold C$40 million of the convertibles in a bought deal on July 11 with a C$6 million over-allotment option.

The conversion price was a 20.9% premium to the company’s closing share price of C$8.31 on July 11.

National Bank Financial Inc. and TD Securities Inc. are the joint lead underwriters.

The company may redeem the issue beginning July 31, 2019 if the stock’s weighted average trading price equals no less than 125% of the conversion price of C$10.05. On or after July 31, 2020, that requirement no longer exists.

The redemption price in either case is par plus accrued interest.

Proceeds will be used for general corporate purposes.

Timbercreek is a Toronto-based non-bank, commercial real estate lender.

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