By Rebecca Melvin
New York, Nov. 10 - Altus Group Income Fund priced C$50 million seven-year convertible debentures in a bought deal at par to yield 5.75% with an initial conversion premium of 36%, according to a news release.
The Regulation S offering was made via a syndicate of underwriters led by BMO Capital Markets and National Bank Financial Inc.
There is an over-allotment option for up to $3 million of additional debentures.
The debentures will be convertible into the fund's trust units at a price of C$18.60 per unit.
The debentures are non-callable for three years and then are provisionally callable until Dec. 31, 2015 subject to a price that is at least 125% of the conversion price. After 2015, the bonds are callable at par plus interest.
Proceeds will be used to repay debt and for general corporate purposes.
The offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange, and is expected to close Nov. 30.
Newmarket, Ont.-based Altus is a provider of real estate consulting and advisory services.
| Issuer: | Altus Group Income Fund
|
| Issue: | Convertible debentures
|
| Amount: | C$50 million
|
| Greenshoe: | C$3 million
|
| Maturity: | Seven years
|
| Bookrunners: | Syndicate led by BMO Capital Markets and National Bank Financial Inc.
|
| Coupon: | 5.75%
|
| Price: | Par
|
| Yield: | 5.75%
|
| Conversion premium: | 36%
|
| Conversion price: | C$18.60
|
| Calls: | Non-callable for three years, then provisionally callable until Dec. 31, 2015 subject to a 125% price hurdle. After 2015 they are freely redeemable
|
| Distribution: | Regulation S
|
| Pricing date: | Nov. 10
|
| Settlement date: | Nov. 30
|
| Stock symbol: | Toronto: AIF.UN
|
| Stock price: | C$13.70 at close Nov. 10
|
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