Firm Capital greenshoe lifts 5.25% convertibles to C$20.49 million

By Susanna Moon

Chicago, March 30 - Firm Capital Mortgage Investment Trust said underwriters partly exercised their over-allotment option for C$2,485,000 more of its 5.25% convertible unsecured subordinated debentures due March 31, 2019, bringing the total deal size to C$20,485,000.

The issuer priced C$18 million of the convertibles at par on March 21 with an initial conversion premium of 10%. Underwriters had a greenshoe for C$2.7 million convertibles.

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.

The company also priced C$18.02 million of common shares, or 1.34 million shares at C$13.45 per share. There was also an over-allotment option for 201,000 shares, which was fully exercised.

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.

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