By Rebecca Melvin
New York, Nov. 19 - KEYreit priced C$20 million of five-year convertible debentures in a bought deal at par to yield 7% with an initial conversion premium of 29%, according to a company news release.
The deal was brought by a syndicate of underwriters co-led by National Bank Financial Inc. and BMO Capital Markets and is subject to normal regulatory approvals.
There is C$3 million over-allotment option.
The debentures are non-callable until Dec. 31, 2015 and then provisionally callable at a 125% price hurdle for one year, before they are freely convertible.
Net proceeds from the offering will be used to redeem the company's outstanding series A 7.15% convertible unsecured subordinated debentures maturing Dec. 31, 2012.
The KEYreit debentures will be distributed under a short form prospectus in Canadian provinces excluding Quebec.
Closing is expected to take place by Dec. 11.
Toronto-based KEYreit is a small-box retail property owner, formerly known as Scott's Real Estate Investment Trust.
| Issuer: | KEYreit
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$20 million
|
| Greenshoe: | C$3 million
|
| Maturity: | Dec. 31, 2017
|
| Joint lead managers: | National Bank Financial Inc., BMO Capital Markets
|
| Coupon: | 7%
|
| Price: | Par, C$1,000
|
| Yield: | 7%
|
| Conversion premium: | 29%
|
| Conversion price: | C$8.00
|
| Conversion ratio: | 125.000 units per debenture
|
| Call: | Dec. 31, 2015
|
| Provisional call: | Between Dec. 31, 2015 and Dec. 31, 2016 subject to 125% hurdle
|
| Pricing date: | Nov. 19
|
| Settlement date: | Dec. 11
|
| Distribution: | Public offering
|
| Stock symbol: | TSX: KRE.UN
|
| Stock reference price: | C$6.21
|
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