By Rebecca Melvin
Princeton, N.J., Nov. 28 - Canada's First Capital Realty Inc. priced C$100 million 12-year convertibles at par to yield 5.5% with an initial conversion premium of 22%, according to a syndicate source.
Desjardins Securities Inc. was bookrunner for the unsecured subordinated debentures, which were sold in a bought deal.
There is a C$15 million over-allotment option.
The debentures will be convertible into common shares at $27 from issuance until Dec. 31, 2011 and at $28 from Jan. 1, 2012 until maturity.
The issue is non-callable for four years and then callable in years four through six subject to a 125% trigger, before being fully callable after year six. There are no puts.
Proceeds will be used to repay amounts outstanding under the company's revolving lines of credit.
Based in Toronto, First Capital is an owner, developer and operator of supermarket anchored neighborhood and community shopping centers. The company also owns 17.8% of Equity One, a shopping center real estate investment trust in the southern United States.
| Issuer: | First Capital Realty Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Bookrunner: | Desjardins Securities Inc.
|
| Amount: | C$100 million
|
| Greenshoe: | C$15 million
|
| Maturity: | Sept. 30, 2017
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 22%
|
| Conversion price: | C$27 until Dec. 31, 2011, then C$28 until maturity
|
| Conversion ratio: | 37.0370; 35.7142
|
| Call: | Non-callable for four years; callable in years four through six at 125% trigger
|
| Put: | No puts
|
| Pricing date: | Nov. 28
|
| Settlement date: | Dec. 19
|
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