By Rebecca Melvin
New York, May 10 - First Capital Realty Inc. priced C$50 million of convertibles due 2019 on a bought-deal basis on Thursday at par to yield 4.75%, according to a news release.
The debentures will be convertible at a price of C$26.75 until July 31, 2017, which equals a 43% initial conversion premium. Subsequently, the debentures will be convertible at a price of C$27.75 until maturity, which represents a 49% premium from the closing price of shares on the Toronto Stock Exchange on Thursday.
The Regulation S debentures were being brought by a syndicate of underwriters led by BMO Capital Markets, TD Securities Inc. and RBC Capital Markets. There is a C$7.5 million greenshoe.
Proceeds will be used for development and redevelopment activities, for acquisitions and for general corporate purposes.
Based in Toronto, First Capital is a developer and operator of supermarket and drugstore-anchored shopping centers.
| Issuer: | First Capital Realty Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$50 million
|
| Greenshoe: | C$7.5 million
|
| Maturity: | July 31, 2019
|
| Underwriters: | Syndicate led by BMO Capital Markets, TD Securities Inc., RBC Capital Markets
|
| Coupon: | 4.75%
|
| Price: | Par
|
| Yield: | 4.75%
|
| Conversion premium: | 43% until July 31, 2017
|
| Conversion price: | C$26.75 until July 31, 2017, and then C$27.75
|
| Conversion ratio: | 37.3832, until July 31, 2017, and then 36.0360
|
| Pricing date: | May 10
|
| Settlement date: | May 22
|
| Distribution: | Public offering in Canada, Regulation S
|
| Stock symbol: | Toronto: FCR
|
| Stock reference price: | C$18.67
|
| Market capitalization: | C$3.35billion
|
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