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First Capital holders convert C$58 million of 5.5% notes so far at reduced conversion price
By Angela McDaniels
Tacoma, Wash., Aug. 9 - First Capital Realty Inc. said roughly C$58 million of its 5.5% convertible subordinated debentures have been converted since it temporarily lowered the conversion price.
As previously reported, the conversion price was lowered to C$16.25 on July 12. The conversion price will remain reduced until 5 p.m. ET on Aug. 16. The conversion price will then revert to C$16.425.
Gazit Canada Inc. is the holder of 48.4% of First Capital Realty's outstanding common shares and about 74% of the outstanding 5.5% convertibles. It plans to convert at least C$74 million of the notes at the lower price.
At First Capital's request, Gazit Canada agreed to limit the conversion over that amount so as to not hold more than half of the common shares as a result of exercising the conversion right at the special conversion price.
Of the C$58 million notes converted so far, about C$50 million were converted by Gazit Canada.
On Jan. 1, 2012, the notes will become callable at par and the conversion price will increase to C$17.031
The company said that, consistent with its practice for all of its outstanding convertibles, it plans to satisfy the principal and interest on redemption or at maturity by issuing a number of common shares obtained by dividing the amount payable by 97% of the volume-weighted average trading price of the shares on the Toronto Stock Exchange for the 20 consecutive trading days ending five trading days prior to the date of redemption or maturity.
Toronto-based First Capital owns and develops supermarket-anchored community shopping centers.
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