First Capital to extend issuer bid for four convertibles by one year

By Susanna Moon

Chicago, Aug. 24 – First Capital Realty Inc. plans to renew its normal course issuer bid for four series of convertible subordinated debentures.

The issuer bid will run for about a year from Aug. 29 until Aug. 28, 2017.

First Capital may purchase up to 10% of the public float of the notes on Aug. 10, as follows, according to a company announcement:

• C$5,467,000 of its C$54.67 million outstanding 5.4% series E convertible unsecured subordinated debentures due Jan. 31, 2019 due Jan. 31, 2019;

• C$5,145,100 of its C$51,601,000 of outstanding 5.25% series F convertible unsecured subordinated debentures due Jan. 31, 2019;

• C$5,121,700 of its C$51,217,000 of outstanding 4.75% series I convertible unsecured subordinated debentures due July 31, 2019; and

• C$5,548,900 of its C$55,489,000 of outstanding 4.45% series J convertible unsecured subordinated debentures due Feb. 28, 2020.

The company said it will enter into one or more automatic securities purchase plans with its broker during the course of the issuer bid in order to make purchases of the convertibles at times when the company ordinarily would not be permitted to do so because of self-imposed internal blackout periods, insider trading rules or otherwise.

First Capital said the convertibles may trade in a range that does not fully reflect its value and that buying them from time to time can be done at prices that make it a good use of the company’s funds.

The company added that making purchases also may increase the liquidity of the convertibles.

Under the current bid ending Aug. 26, First Capital had purchased C$952,000 principal amount of series E debentures, C$3,023,000 principal amount of series F debentures, C$387,000 principal amount of series I debentures and C$981,000 principal amount of series J debentures as of Aug. 10 at weighted-average prices per C$100.00 principal amount of C$102.73, C$101.87, C$100.52 and C$100.10, respectively.

Based in Toronto, First Capital Realty owns, develops and operates supermarket and drugstore anchored shopping centers.

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