By Rebecca Melvin
New York, Nov. 28 - Dundee Industrial REIT sold C$75 million of seven-year convertible unsecured subordinated debentures on a bought-deal basis at par to yield 5.25% and with an initial conversion premium of 30%, according to a news release.
The deal came concurrently with an offering of 118 million units at C$10.60 per unit for proceeds of C$125.1 million. Both deals were associated with the company's agreement to acquire KingSett Capital's portfolio of 5.3 million square feet of industrial properties for about C$498.5 million.
The convertible debentures were brought by a syndicate of underwriters led by TD Securities Inc.
In addition to the public offering, C$25 million of units and C$25 million of the convertibles will be issued to an affiliate of KingSett at the same terms and price as the public offerings.
There is an over-allotment option to purchase up to an additional 1.77 million units and C$11.25 million debentures.
The debentures will be convertible at the holder's option into units at a conversion price of C$13.80 per unit.
The offering is scheduled to close by Dec. 13.
Toronto's Dundee Industrial REIT is an investment trust formed to invest in real estate outside of Canada.
| Issuer: | Dundee International REIT
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$75 million
|
| Greenshoe: | C$11.25 million
|
| Maturity: | 2019
|
| Concurrent offering: | C$125.1 million of units at C$10.60 each
|
| Underwriters: | Syndicate led by TD Securities Inc.
|
| Coupon: | 5.25%
|
| Price: | Par, C$1,000
|
| Yield: | 5.25%
|
| Conversion premium: | 30%
|
| Conversion price: | C$13.80
|
| Announcement date: | Nov. 28
|
| Settlement date: | Dec. 13
|
| Reference price: | C$10.60
|
| Stock price: | C$10.90 as of close Nov. 28
|
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