By Abigail W. Adams
Portland, Me., March 9 – Atrium Mortgage Investment Corp. priced C$35 million 5.1% convertible subordinated debentures due 2029 at par with a conversion price of C$16.75 in a bought deal, according to a company news release.
TD Securities Inc. and RBC Capital Markets led the syndicate of underwriters for the off-shelf offering, which will be marketed in all provinces of Canada except Quebec.
The deal has a greenshoe of C$5.25 million.
The debentures are non-callable until March 31, 2025 and are callable subject to a 125% hurdle from March 31, 2025 to March 31, 2027 when they become freely callable.
Net proceeds will be used to repay debt under the company’s revolving operating credit facility.
Atrium is a Toronto-based residential and commercial mortgage lender.
| Issuer: | Atrium Mortgage Investment Corp.
|
| Amount: | C$35 million
|
| Greenshoe: | C$5.25 million
|
| Issue: | Convertible subordinated debentures
|
| Maturity: | March 31, 2029
|
| Bookrunners: | TD Securities Inc. and RBC Capital Markets
|
| Coupon: | 5.1%
|
| Price: | Par
|
| Yield: | 5.1%
|
| Conversion price: | C$16.75
|
| Call options: | Non-callable until March 31, 2025, callable subject to a 125% hurdle from March 31, 2025 to March 31, 2027, then freely callable
|
| Pricing date: | March 9
|
| Settlement date: | March 18
|
| Distribution: | Off-shelf
|
| Stock symbol: | TSX: AI
|
| Market capitalization: | C$595.41 million
|
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