By Rebecca Melvin
New York, Nov. 16 – BTB Real Estate Investment Trust has priced C$25 million of 7.15% five-year convertible unsecured subordinated debentures on a bought-deal basis, according to a news release.
The deal was brought by a syndicate of underwriters led by National Bank Financial Inc. and including Dundee Securities Ltd., Laurentian Bank Securities Inc., Raymond James Ltd., TD Securities Inc., Euro Pacific Canada Inc., GMP Securities LP and Scotia Capital Inc.
The issue, which is being distributed in Canada under a short form prospectus, has a C$3.75 million greenshoe. The initial conversion price is C$5.65 and matures on Dec. 31, 2020.
Proceeds are being used to redeem C$23 million of the company’s series C convertible debentures due Jan. 31, 2016 and for general corporate purposes.
The debentures are non-callable for three years and then are provisionally callable for one year if shares exceed 125% of the conversion price.
They may be redeemed by delivering that number of units equal to the amount due divided by 95% of the market price for the units at that time plus accrued interest.
The company will file for regulatory approvals for the offering by Nov. 20.
BTB is a Montreal-based real estate investment trust.
| Issuer: | BTB Real Estate Investment Trust
|
| Issue: | Convertible subordinated debentures
|
| Amount: | C$25 million
|
| Greenshoe: | C$3.75 million
|
| Maturity: | Dec. 31, 2020
|
| Underwriters: | National Bank Financial Inc. and including Dundee Securities Ltd., Laurentian Bank Securities Inc., Raymond James Ltd., TD Securities Inc., Euro Pacific Canada Inc., GMP Securities LP and Scotia Capital Inc.
|
| Coupon: | 7.15%
|
| Conversion price: | C$5.65
|
| Conversion ratio: | 176.9912
|
| Call option: | Non-callable until Dec. 31, 2018, then provisionally callable for one year if shares exceed 125% of conversion
|
| Announcement date: | Nov. 16
|
| Settlement date: | Nov. 20
|
| Unit symbol: | Toronto: BTB.UN
|
| Unit price: | C$4.64 at close Nov. 16
|
| Market capitalization: | C$160.7 million
|
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