By Sheri Kasprzak
Atlanta, Jan. 31 - Lanesborough Real Estate Investment Trust said it will raise up to C$1 million in a private placement.
The company plans to sell up to 200,000 trust units at C$5 each.
The company also announced and then amended plans to sell up to C$12 million in subordinated series E convertible debentures. The company will attempt to raise at least C$2 million in the debenture offering. On Monday, the company originally said it planned to raise up to C$8 million.
The debentures mature in five years and bear interest at 8% annually.
The debentures are convertible into common shares beginning two years after the initial issuance date at C$6.50 per unit in the third year, C$7.15 in the fourth year and C$7.90 in the fifth year.
The unit offering is scheduled to close Feb. 1, and the debenture offering is expected to close Feb. 15.
Westwind Partners Inc. is the placement agent for the unit offering and Westwind, Wellington West Capital Inc. and Desjardins Securities Inc. are placement agents in the debenture offering.
Lanesborough is a Winnipeg, Man.-based real estate investment trust. It plans to use the proceeds from both the unit offering and the debenture offering to fund equity commitments associated with multifamily apartment properties and for general corporate purposes.
| Issuer: | Lanesborough Real Estate Investment Trust
|
| Issue: | Trust units
|
| Amount: | $1 million (maximum)
|
| Units: | 200,000 (maximum)
|
| Price: | C$5.00
|
| Warrants: | No
|
| Placement agent: | Westwind Partners Inc.
|
| Pricing date: | Jan. 28
|
| Settlement date: | Feb. 1
|
| Stock price: | C$5.81 at close Jan. 28
|
|
|
| Issuer: | Lanesborough Real Estate Investment Trust
|
| Issue: | Subordinated series E convertible debentures
|
| Amount: | C$12 million (maximum); C$2 million (minimum)
|
| Maturity: | Five years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | C$6.50 per unit in the third year, C$7.15 in the fourth year and C$7.90 in the fifth year
|
| Warrants: | No
|
| Placement agents: | Westwind Partners Inc., Wellington West Capital Inc., Desjardins Securities Inc.
|
| Pricing date: | Jan. 28
|
| Settlement date: | Feb. 15
|
| Stock price: | C$5.81 at close Jan. 28
|
|
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