Canada's Lanesborough REIT plans five-year convertibles, to price in a week

By Kenneth Lim

Boston, Nov. 17 - Canada's Lanesborough Real Estate Investment Trust plans to price an undetermined amount of five-year convertible subordinated unsecured debentures in about a week's time, syndicate sources said.

Price talk has not been set, syndicate sources confirmed.

The debentures are offered at par.

The Regulation S offering is led by National Bank Financial, which is placing the deal on a best efforts basis.

The debentures will be non-callable for the first three years. They may be called in the fourth year subject to a hurdle at 125% of the conversion price and are freely callable in the fifth year.

There is takeover protection.

Lanesborough is a Winnipeg, Man.-based real estate investment trust holding a portfolio of residential and commercial properties in Canada. It said the proceeds of the deal will be used to pay C$7.3 million of the C$22.2 million acquisition of a senior housing property and for future purchases.

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