By Rebecca Melvin
New York, Dec. 17 - First Capital Realty Inc. priced C$50 million of 7.5-year unsecured subordinated convertible debentures on a bought-deal basis to yield 5.7% with an initial conversion premium of 38%, according to a news release.
The offering is being made via a syndicate of underwriters led by BMO Capital Markets and TD Securities Inc.
Proceeds from the offering will be used to pay down amounts owing on certain revolving credit facilities.
Closing is expected by Dec. 30, and the debentures will mature June 30, 2017.
Holders will be able to convert the debentures at a rate of about 33.333 common shares per C$1,000 principal amount, which is equal to a conversion price of C$30.00 per common share.
Subject to regulatory approval, the company plans to satisfy interest and principal on redemption or at maturity by issuing the number of common shares obtained by dividing the amount payable by 97% of the volume-weighted average trading price of the common shares for 20 consecutive trading days.
The offering is being made under the company's trust indenture dated Dec. 19, 2005.
First Capital placed C$75 million of 6.25% convertibles in September.
Toronto-based First Capital is a developer and operator of supermarket and drugstore-anchored shopping centers.
| Issuer: | First Capital Realty Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$50 million
|
| Maturity: | June 30, 2017
|
| Bookrunners: | Syndicate led by BMO Capital Markets and TD Securities Inc.
|
| Coupon: | 5.7%
|
| Price: | Par, C$1,000
|
| Yield: | 5.7%
|
| Conversion premium: | 38%
|
| Conversion price: | C$30.00 per share
|
| Conversion ratio: | 33.333
|
| Pricing date: | Dec. 17
|
| Settlement date: | Dec. 30
|
| Stock listing: | Toronto: FCR
|
| Stock reference: | C$21.80
|
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