By Rebecca Melvin
Princeton, N.J., March 30 - Canada's Firm Capital Mortgage Investment Trust priced C$25 million of seven-year convertibles at par to yield 6% with an initial conversion premium of 10.6%, according to a syndicate source.
TD Securities Inc. was bookrunner on the bought deal.
The unsecured subordinated debentures are non-callable for three years. From year three to June 29, 2010, the debentures will be redeemable at par, plus accrued and unpaid interest, provided that the units are then trading at not less than 125% of the conversion price. Thereafter they will be redeemable at par, plus accrued and unpaid interest.
Proceeds of the offering will be used to repay the Trust's operating facility debt, for general operating expenses and for working capital.
Toronto-based Firm Capital, through its mortgage banker, Firm Capital Corp., is a non-bank lender providing residential and commercial short-term bridge and conventional real estate finance, including mezzanine and equity investments.
| Issuer: | Firm Capital Mortgage Investment Trust
|
| Issue: | Unsecured subordinated debentures
|
| Bookrunner: | TD Securities Inc.
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| Amount: | C$25 million
|
| Maturity: | June 30, 2013
|
| Coupon: | 6%
|
| Price: | Par
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| Yield: | 6%
|
| Call features: | Non-callable for three years, then at par through June 29, 2010 if units trade at not less than 125% of conversion price; thereafter redeemable at par
|
| Conversion premium: | 10.6%
|
| Conversion price: | C$11.75
|
| Conversion ratio: | 85.1064
|
| Pricing date: | March 30
|
| Settlement date: | April 24
|
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