Timbercreek greenshoe ups 5.45% convertibles due 2022 to C$46 million

By Susanna Moon

Chicago, Feb. 7 – Timbercreek Financial Corp. said underwriters fully exercised the C$6 million over-allotment option on its 5.45% convertible subordinated debentures due March 31, 2022.

This brings the total deal size to C$46 million, according to a company press release.

As reported, Timbercreek priced C$40 million of the 5.45% convertibles at par in a bought deal on Jan. 18.

National Bank Financial Inc. and TD Securities Inc. were the lead bookrunners.

The conversion price is C$10.05, resulting in a 14.8% initial conversion premium from the Jan. 18 closing share price.

The company can redeem the debentures on or after March 31, 2020 and prior to March 31, 2021 at par plus accrued interest, provided the stock price hits a 125% hurdle. On or after March 31, 2021, the paper can be redeemed at any time.

Holders can meantime convert their holdings into common stock at any time on the earlier of the first business day preceding the maturity date and the first business day preceding any redemption.

Proceeds will be used to repay amounts owed under a secured revolving credit facility. The company will then draw on that same facility for the purpose of funding future mortgage loans.

Timbercreek is a Toronto-based non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate investors.

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