By Kenneth Lim
Boston, June 20 - Canada's First Capital Realty Inc. priced C$50 million of 10.25-year convertible subordinated unsecured debentures on Thursday to yield 5.5% with an initial conversion premium of 0.75% that steps up to 4.48% after five years.
The convertibles will be issued at par.
There is no over-allotment option.
RBC Capital Markets is the bookrunner of the Regulation S offering.
Half of the convertibles will be sold to Gazit-Globe Ltd., a major shareholder of the issuer. The remaining $25 million of convertibles will be placed by RBC at the same terms.
The debentures may be issued in two classes, as Canadian debentures and as U.S. debentures. The class U.S. debentures will not be convertible if First Capital publicly announces a reorganization or other transaction.
First Capital, a Toronto-based real estate developer of shopping centers, said the proceeds of the deal will be used to pay down outstanding revolving debt, to fund future acquisitions and for general purposes.
| Issuer: | First Capital Realty Inc.
|
| Issue: | Convertible subordinated unsecured debentures
|
| Bookrunner: | RBC Capital Markets
|
| Amount: | C$50 million
|
| Greenshoe: | None
|
| Maturity: | Sept. 30, 2017
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 0.75% until Dec. 31, 2011; 4.48% after that
|
| Conversion price: | C$27 until Dec. 31, 2011; C$28 after that
|
| Pricing date: | June 20
|
| Distribution: | Regulation S
|
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