New York, July 12 - InnVest Real Estate Investment Trust priced C$70 million of convertible extendible unsecured subordinated debentures to yield 5.85% with an initial conversion price of C$14.70.
RBC Capital Markets is bookrunner with Scotia Capital Inc. as co-manager for the bought deal.
Proceeds, along with a C$200 million sale of subscription receipts at C$12.35 each, will be used to help fund the C$679 million acquisition of Legacy Hotels Real Estate Investment Trust.
The acquirer will also assume C$194 million of mortgage debt and obtain C$215 million of bridge financing from RBC that will be repaid from the refinancing of mortgages and new mortgages on unencumbered assets.
The purchase is being carried out in partnership with Cadbridge Investors LP, a joint venture between affiliates of Cadim, a division of the Caisse de Depot et placement du Quebec, and Westmont Hospitality Group. A new limited partnership jointly owned by InnVest and Cadbridge, called LGY Acquisition LP, will carry out the transaction. At closing, InnVest will own 26% of LGY.
InnVest is a Toronto-based owner of hotels.
| Issuer: | InnVest Real Estate Investment Trust
|
| Issue: | Convertible extendible unsecured subordinated debentures
|
| Amount: | C$70 million
|
| Maturity: | Aug. 1, 2014 (Dec. 31, 2007 if acquisition does not close)
|
| Coupon: | 5.85%
|
| Conversion price: | C$14.70
|
| Conversion ratio: | 68.027
|
| Bookrunner: | RBC Capital Markets
|
| Pricing date: | July 12
|
| Settlement: | Aug. 3
|
| Distribution: | Short-form prospectus in Canada
|
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