First Capital: C$84.7 million 5.5% notes converted at reduced price

By Angela McDaniels

Tacoma, Wash., Aug. 17 - First Capital Realty Inc. said roughly C$84.7 million of its 5.5% convertible subordinated debentures have been converted since it temporarily lowered the conversion price to C$16.25 on July 12.

The conversion price was lowered until 5 p.m. ET on Aug. 16. It reverted to C$16.425 on Aug. 17.

Shareholder and noteholder Gazit Canada Inc. converted C$74 million of the notes at the lower price, increasing its stake in the company to 49.6% from 48.4%. It holds 65.1% of the C$128.2 million of convertibles that remain outstanding.

At First Capital's request, Gazit Canada agreed to limit its conversions so that it would not hold more than half of the company's common shares following the conversion.

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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