By Rebecca Melvin
New York, Feb. 7 - First Capital Realty Inc. priced C$50 million of seven-year convertible unsecured subordinated debentures on a bought-deal basis on Thursday to yield 4.45% and with an initial conversion price of C$26.75 that steps up after five years to C$27.75, according to a company news release.
The initial conversion price represents a conversion rate of about 37.3832 shares per debenture and a premium of 40%. The step up represents a conversion rate of about 36.0360 shares per debenture and a premium of 46% relative to the current stock price.
The debentures were bought by a syndicate of underwriters led by Scotiabank and TD Securities Inc. There is an over-allotment option for underwriters to purchase up to an additional C$7.5 million of debentures.
Proceeds will be used for development and redevelopment activities, for acquisitions and for general corporate purposes.
Toronto-based First Capital Realty is a shopping center owner and developer.
| Issuer: | First Capital Realty Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$50 million
|
| Greenshoe: | C$7.5 million
|
| Maturity: | Feb. 28, 2020
|
| Bookrunners: | Syndicate led by Scotiabank and TD Securities Inc.
|
| Coupon: | 4.45%
|
| Price: | Par, C$1,000 per debenture
|
| Yield: | 4.45%
|
| Conversion premium: | 40% until Feb. 28, 2018; 46% afterward
|
| Conversionp price: | C$26.75 until Feb. 28, 2018; C$27.75 afterward
|
| Conversion ratio: | 37.3832 until Feb. 28, 2018; 36.0360 afterward
|
| Pricing date: | Feb. 7
|
| Settlement date: | Feb. 19
|
| Distribution: | Short form base shelf prospectus in Canada
|
| Stock symbol: | Toronto: FCR
|
| Stock reference price: | C$19.05 as of close Feb. 6
|
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