By Rebecca Melvin
New York, Dec. 14 - BTB Real Estate Investment Trust priced C$20 million five-year convertible debentures on a bought-deal basis to yield 8% with an initial conversion premium of 32%, according to a news release.
The Regulation S deal was made by a syndicate of underwriters co-led by National Bank Financial Inc. and Dundee Securities Corp. and including Canaccord Genuity Corp. and HSBC Securities (Canada) Inc.
There is an over-allotment option to purchase up to an additional C$3 million of debentures.
The debentures, which mature Jan. 31, 2016, will be convertible at the holder's option into units of BTB at a conversion price of C$1.00 per unit.
The convertibles will be non-callable until Jan. 31, 2014 and then provisionally callable for one year subject to a 125% price hurdle. After Jan. 31, 2015, the debentures may be redeemed for 95% of the market price for the units plus accrued interest.
Proceeds will be used to pay down the outstanding debt under the REIT's current acquisition credit facility, to fund future property acquisitions and for general corporate purposes.
By Dec. 20, BTB will file with the securities commissions and other similar regulatory authorities in each of the provinces of Canada a preliminary short form prospectus relating to the issuance.
Closing of the offering is expected to take place by Jan. 11.
BTB is a Montreal-based real estate investment trust.
| Issuer: | BTB Real Estate Investment Trust
|
| Issue: | Convertible debentures
|
| Amount: | C$20 million
|
| Greenshoe: | C$3 million
|
| Maturity: | Jan. 31, 2016
|
| Underwriters: | National Bank Financial Inc. and Dundee Securities Corp. and including Canaccord Genuity Corp. and HSBC Securities (Canada) Inc.
|
| Coupon: | 8%
|
| Price: | Par, C$1,000
|
| Yield: | 8%
|
| Conversion premium: | 32%
|
| Conversion price: | C$1.00 per unit
|
| Call: | Non-callable until Jan 31, 2014, then provisionally callable for a year at a 125% price hurdle
|
| Pricing date: | Dec. 14
|
| Settlement date: | Jan. 11
|
| Stock symbol: | Toronto: BTB.UN
|
| Stock reference price: | C$0.76 as of Dec. 13
|
| Distribution: | Regulation S, short form prospectus in Canada
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
