By Sheri Kasprzak
New York, Nov. 21 - First Capital Realty Inc. is gearing up to close a $50 million private placement of unsecured subordinated convertible debentures.
The 5.5% debentures are due Sept. 30, 2017 and are convertible into common shares at $27.00 each through Dec. 31, 2011 and at $28.00 each from Jan. 1, 2012 through maturity. Gazit Canada Inc. is the investor.
The deal is set to close in late November or early December.
Other investors have agreed to buy another $50 million in principal of the debentures. Those debentures may be issued in two classes - Canadian debentures and U.S. debentures.
Proceeds will be used to pay down the company's debt facilities and to fund future acquisition and development activities. The rest will be used for working capital.
Toronto-based First Capital owns and develops supermarket-anchored community shopping centers.
| Issuer: | First Capital Realty Inc.
|
| Issue: | Unsecured subordinated convertible debentures
|
| Amount: | $50 million
|
| Maturity: | Sept. 30, 2017
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion price: | $27.00 through Dec. 31, 2011; $28.00 from Jan. 1, 2012 through maturity
|
| Warrants: | No
|
| Investor: | Gazit Canada Inc.
|
| Announcement date: | Nov. 21
|
| Stock symbol: | Toronto: FCR
|
| Stock price: | C$26.79 at close Nov. 20
|
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