By Rebecca Melvin
New York, Feb. 22 - InnVest Real Estate Investment Trust has agreed to issue C$50 million of seven-year stapled convertible unsecured subordinated debentures on a bought-deal basis to yield 5.75% with an initial conversion premium of 31%, according to a news release.
InnVest is also selling C$25 million of stapled units at C$7 per unit.
The bought deal was reached with syndicate of underwriters co-led by RBC Capital Markets and Scotia Capital Inc.
Each unit is comprised of one trust unit of the real estate investment trust and one non-voting trust unit of InnVest Operations Trust.
Each C$1,000 debenture consists of C$850 of convertible debentures of the REIT and C$150 million of convertible debentures of IOT.
The stapled units are convertible at the option of the holder into stapled units at C$9.45 per stapled unit.
The debentures are convertible at the option of the holder into an equal number of REIT units and IOT units, which will trade together as a stapled unit until the occurrence of an uncoupling event.
Some 85% of net proceeds will be used by InnVest and 15% will be used by IOT to fund capital improvements, to future acquisitions and for general trust purposes.
InnVest plans to file in Canada a preliminary short form prospectus by Friday.
The debentures will mature on March 30, 2018.
InnVest is a Toronto-based holder of hotel real estate.
| Issuer: | InnVest Real Estate Investment Trust
|
| Issue: | Stapled convertible unsecured subordinated debentures
|
| Amount: | C$50 million
|
| Maturity: | March 30, 2018
|
| Bookrunners: | Syndicate led by RBC Capital Markets and Scotia Capital Inc.
|
| Concurrent offering: | C$50 million of stapled units at C$7 per unit
|
| Coupon: | 5.75%
|
| Price: | Par, C$1,000
|
| Yield: | 5.75%
|
| Conversion premium: | 31%
|
| Conversion price: | C$9.45 per stapled unit
|
| Pricing date: | Feb. 22
|
| Settlement date: | March 10
|
| Distribution: | Regulation S, short form prospectus in Canada
|
| Stock listing: | Toronto: INN.UN
|
| Stock reference: | C$7.20
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
