Atrium Mortgage greenshoe exercise ups convertibles to C$40.25 million

By Tali Rackner

Norfolk, Va., Oct. 2 – Underwriters for Atrium Mortgage Investment Corp.’s 5.5% convertible unsecured subordinated debentures due Sept. 30, 2021 exercised their over-allotment option in full, adding an additional C$5.25 million, according to a press release.

The company priced C$30 million of the seven-year convertibles on Sept. 2 and upsized the issue to C$35 million on Sept. 3.

As previously reported, the Regulation S deal was bought by a syndicate of underwriters led by bookrunners TD Securities Inc. and RBC Capital Markets LLC and co-led by CIBC.

The debentures are non-callable until Sept. 30, 2017 and then are provisionally callable until Sept. 30, 2019, if shares rise to 125% of the conversion price. The debentures mature Sept. 30, 2021.

The securities are being priced under a preliminary short-form prospectus in Canadian provinces except Quebec.

Proceeds will be used to repay existing debt under the company’s revolving credit facility and for general corporate purposes, particularly funding future mortgage loan opportunities.

Toronto-based Atrium is a non-bank lender.

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