First Capital greenshoe lifts 5.4% convertibles to C$57.5 million

By Susanna Moon

Chicago, April 28 - First Capital Realty Inc. said underwriters exercised in full the C$7.5 million over-allotment option on its 5.4% convertible unsecured subordinated debentures due Jan. 31, 2019, bringing the total deal size to C$57.5 million.

First Capital priced the convertibles on a bought-deal basis at par on April 18 with an initial conversion premium of 39%.

The syndicate of underwriters was co-led by RBC Dominion Securities Inc. and TD Securities Inc. and includes BMO Nesbitt Burns Inc., Scotia Capital Inc., CIBC World Markets Inc., National Bank Financial Inc., Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd.

The notes are convertible into First Capital common shares at a rate of about 44.2087 shares per C$1,000 principal amount, which is equal to a conversion price of C$22.62 per common share.

The debentures are non-callable until Jan. 31, 2015 and then are provisionally callable for two years subject to a 125% price hurdle.

In a share settlement at redemption, payout will be based on dividing the C$1,000 principal amount by 97% of the volume-weighted average trading price of the common shares on the Toronto Stock Exchange for 20 consecutive trading days.

Proceeds will be used for development and redevelopment activities, for acquisitions and for general corporate purposes.

First Capital is a developer and operator of supermarket and drugstore-anchored shopping centers based in Toronto.

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