BTB REIT greenshoe exercise lifts 7.25% convertibles to C$23 million

By Susanna Moon

Chicago, July 13 - BTB Real Estate Investment Trust said that underwriters fully exercised the $3 million over-allotment option on its seven-year 7.25% convertible subordinated debentures, bringing the total deal size to C$23 million.

BTB said on June 20 that it would issue C$20 million of the convertibles to the public on a bought-deal basis with the C$3 million greenshoe, which was exercisable for 30 days after closing.

The syndicate of underwriters for the offering is led by National Bank Financial Inc. and includes Canaccord Genuity Corp., Dundee Securities Ltd., GMP Securities LP and HSBC Securities (Canada) Inc.

The notes will mature on July 31, 2018.

The debentures are convertible into units of BTB at any time at a conversion price of C$1.22 per unit, or equivalently, a rate of 819.672 units per C$1,000 principal amount.

The debentures are non-callable for three years. On and after July 31, 2014 and before July 31, 2016, the debentures are callable, provided that the volume-weighted average trading price for BTB units is not less than 125% of the conversion price. Beginning July 31, 2016, the debentures may be redeemed by BTB in whole or in part from time to time at par plus accrued interest.

BTB may repay the principal amount of the debentures upon redemption or at maturity by delivering a number of units equal to the amount due divided by 95% of the market price for the units at that time, plus accrued interest in cash.

Proceeds will be used to repay the C$12.9 million of outstanding series A convertible debentures due October 2011, to fund future property acquisitions and for general corporate purposes.

Closing of the offering is expected to take place on July 13.

BTB is a Montreal-based real estate investment trust.

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