By Abigail W. Adams
Portland, Me., June 12 – Firm Capital Mortgage Investment Corp. priced C$25 million of seven-year convertible debentures after the market close of Tuesday with a coupon of 5.4% and an initial conversion premium of 13.5%, according to a company news release.
TD Securities Inc., CIBC Capital Markets and Scotiabank were lead underwriters for the bought deal, which carries a greenshoe of C$3.75 million.
The convertible debentures will be distributed via a prospectus supplement in Canada and offered through private placements in the United States.
Gross proceeds are expected to be $28.75 million if the greenshoe is exercised in full. Proceeds will be used to repay debt, fund investments and for general corporate purposes.
Firm Capital is a Toronto-based non-bank lender providing real estate financing and residential and commercial short-term bridge loans.
Issuer: | Firm Capital Mortgage Investment Corp.
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Securities: | Convertible unsecured subordinated debentures
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Amount: | C$25 million
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Greenshoe: | C$3.75 million
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Maturity: | June 30, 2025
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Bookrunners: | TD Securities Inc., CIBC Capital Markets and Scotiabank
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Coupon: | 5.4%
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Price: | Par
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Conversion premium: | 13.5%
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Conversion price: | C$15.00
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Pricing date: | June 12
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Settlement date: | June 21
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Stock symbol: | TSX: FC
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Stock price: | C$13.22
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Market capitalization: | C$342.61 million
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