First Capital plans normal course issuer bid for convertibles

By Jennifer Chiou

New York, Aug. 23 - First Capital Realty Inc. announced that it intends to make a normal course issuer bid for the following series of its convertible debentures:

• C$127,433,500 of 5.5% convertible subordinated debentures due Sept. 30, 2017, class CDN;

• C$723,000 of 5.5% convertible subordinated debentures due Sept. 30, 2017, class US;

• C$67,658,000 of 6.25% convertible subordinated debentures due Dec. 31, 2016;

• C$50 million of 5.7% convertible subordinated debentures due June 30, 2017; and

• C$57.5 million of 5.4% convertible subordinated debentures due Jan. 31, 2019.

The company plans to start the bid on Aug. 25, with expiration on Aug. 24, 2012.

All acquired convertibles will be canceled, according to a news release.

First Capital said that it will enter into one or more pre-defined automatic securities purchase plans with its broker from time to time during the course of the bid to enable purchases of convertibles at times when the company would not ordinarily be permitted to. This is due to its self-imposed internal blackout periods, insider trading rules or otherwise, the release added.

Under the bid, First Capital Realty may purchase such convertibles up to the following limits:

• C$6,371,600 total for the 5.5% convertibles, class CDN, with a C$15,000 daily limit;

• C$72,300 total for the 5.5% convertibles, class US, with a C$1,000 daily limit;

• C$6,682,900 total for the 6.25% convertibles, with a C$30,300 daily limit;

• C$4,985,000 total for the 5.7% convertibles, with a C$10,700 daily limit; and

• C$5.75 million total for the 5.4% convertibles, with a C$30,500 daily limit.

For the class CDN 5.5% convertibles, the total limit is 5% of the outstanding amount. The total amounts for the other series make up 10% of the respective public floats for those securities.

First Capital said it believes that its convertibles may trade in a range that may not fully reflect the value of the convertibles. As a result, the company believes that the purchase of convertibles from time to time will be an appropriate use of its available funds.

In addition, purchases under the issuer bid may increase the liquidity of the convertibles, the release stated.

First Capital has purchased C$943,000 of the 5.5% class CDN debentures and C$7,185,000 of the 6.25% debentures in the past 12 months.

Toronto-based First Capital owns and develops supermarket-anchored community shopping centers.

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