By Rebecca Melvin
New York, March 21 - Firm Capital Mortgage Investment Trust closed its offering of C$18 million of seven-year convertible unsecured subordinated debentures at par of C$1,000 to yield 5.25% with an initial conversion premium of 10%, according to a news release Wednesday.
The company also priced C$18.02 million of common shares, or 1.34 million shares at C$13.45 per share.
The offering was underwritten by a syndicate of underwriters led by TD Securities Inc. and including Dundee Securities Ltd., National Bank Financial Inc., Desjardins Securities Inc. and Macquarie Capital Markets Canada Ltd.
There is a C$2.7 million over-allotment option for the Regulation S debentures and an over-allotment option for the stock of 201,000 shares.
Each debenture is convertible into common shares at a price of C$14.80 per share, or 67.5676 shares per C$1,000 debenture.
The debentures are listed and posted for trading on the Toronto Stock Exchange under the symbol FR.DB.C.
Proceeds will be used to repay some debt.
Toronto-based Firm Capital, through its mortgage banker Firm Capital Corp., is a non-bank lender providing residential and commercial finance.
| Issuer: | Firm Capital Mortgage Investment Trust
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$18 million
|
| Greenshoe: | C$2.7 million
|
| Maturity: | March 31, 2019
|
| Concurrent offering: | C$18.02 million of common shares at C$13.45 per share
|
| Bookrunner: | Syndicate led by TD Securities Inc.
|
| Coupon: | 5.25%
|
| Price: | Par of C$1,000
|
| Yield: | 5.25%
|
| Conversion premium: | 10%
|
| Conversion price: | C$14.80
|
| Conversion ratio: | 67.5676
|
| Settlement date: | March 21
|
| Distribution: | Regulation S
|
| Stock symbol: | Toronto: FC
|
| Debenture symbol: | Toronto: FR.DB.C
|
| Stock reference price: | C$13.45
|
| Market capitalization: | C$204.27 million
|
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