By Kenneth Lim
Boston, Nov. 15 - Chartwell Seniors Housing Real Estate Investment Trust on Wednesday raised the coupon and conversion premium on its planned C$125 million of five-year convertible subordinated unsecured debentures to a coupon of 6% and an initial conversion premium of 14.7%.
Each debenture was offered at par.
The coupon was originally 5.75%, and the initial conversion premium was 14.3%. The initial conversion price is now C$15.60 per unit, lowered from the original C$16 per unit.
There is a concurrent C$50 million offering of common stock at C$13.60 per unit, and a C$100 million placement of common stock at the same price. There was originally a C$150 million offering of common stock at C$14 per unit concurrent with the earlier convertible deal.
RBC Capital Markets is leading the Regulation S offering.
Chartwell said it was amending the terms of the deal, first announced on Oct. 19, because of new Canadian policies aimed at raising taxes on investment trusts.
Chartwell, a Mississauga, Ont.-based real estate investment trust, said it will use the proceeds of the deals to buy properties in the United States and Canada, and to repay outstanding debt.
| Issuer: | Chartwell Seniors Housing Real Estate Investment Trust
|
| Issue: | Convertible subordinated unsecured debentures
|
| Bookrunner: | RBC Capital Markets
|
| Amount: | C$125 million
|
| Maturity: | Dec. 1, 2011
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 14.7%
|
| Conversion price: | C$15.60
|
| Conversion ratio: | 64.1026
|
| Pricing date: | Nov. 15
|
| Settlement date: | Nov. 28
|
| Distribution: | Regulation S
|
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