First Capital issues 6.5 million shares for $106.8 million notes

By Jennifer Chiou

New York, Jan. 3 - First Capital Realty Inc. announced the issue of about 6.5 million of its common shares for $106.8 million total of its 5.5% convertible subordinated debentures due Sept. 30, 2017, class CDN, and 5.5% convertible subordinated debentures due Sept. 30, 2017, class US.

The conversions included $83.4 million of the securities from Gazit Canada Inc.

On Nov. 22, the company obtained approval from the Toronto Stock Exchange to temporarily change the conversion price of the debentures to C$16.30, for a rate of 61.349 common shares for each C$1,000 principal amount of debentures from Nov. 25 through 6 p.m. ET on Dec. 30. The conversion price was reduced from C$16.425.

As reported, the conversion price increased to C$17.031 on Jan. 1 for a conversion rate of 58.716 shares per C$1,000 of debentures. The outstanding amount of debentures now stands at $19.9 million.

From Jan. 1 onward, the convertible will be callable at par. Upon redemption or at maturity, First Capital Realty plans to satisfy the amount owed on the convertibles by issuing a number of shares equal to the amount owed divided by 97% of the volume-weighted average trading price of its shares for the 20 consecutive trading days ending five days prior to the redemption date.

On Aug. 23, the company announced plans to make a normal-course issuer bid for the 5.5% convertibles as well as other series of convertible debentures.

Toronto-based First Capital owns and develops supermarket-anchored community shopping centers. Its shares closed at C$16.65 (Toronto: FCR) on Nov. 22 and at C$17.59 on Jan. 3.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.