BTB Real Estate greenshoe lifts 8% convertibles to C$23 million

By Melissa Kory

Cleveland, Jan. 11 - BTB Real Estate Investment Trust said its underwriters exercised in full the C$3 million over-allotment option, lifting its closed offering of 8% series C convertible subordinated debentures due Jan. 31, 2016 to C$23 million.

BTB priced C$20 million of the five-year convertibles on Dec. 14 on a bought-deal basis to yield 8% with an initial conversion premium of 32%.

The debentures were sold to a syndicate of underwriters led by National Bank Financial Inc. and Dundee Securities Corp. and including Canaccord Genuity Corp. and HSBC Securities (Canada) Inc.

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.

At least C$10 million of the C$21.4 million of proceeds from the sale will be used to pay down the outstanding debt under BTB's acquisition credit facility. Remaining proceeds will be used to fund future property acquisitions by subsidiaries of BTB or added to BTB's working capital.

BTB is a Montreal-based real estate investment trust.

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