By Rebecca Melvin
New York, Sept. 21 – NorthWest Healthcare Properties Real Estate Investment Trust has priced C$50 million of five-year convertible unsecured subordinated debentures on a bought-deal basis to yield 5.5% with an initial conversion premium of 29%, according to a company news release.
The debentures, with a par value of $1,000 each, were priced via a syndicate of underwriters led by BMO Capital Markets and RBC Capital Markets. There is an over-allotment option for up to C$7.5 million additional debentures.
The paper is are non-callable until Oct. 31, 2018 and then provisionally callable until Oct. 31, 2019 if shares exceed 125% of the conversion price. After that, they are freely callable until maturity on Oct. 31, 2020.
Proceeds of the offering will be used to repay existing debt and for general trust purposes.
The offering is being made by way of a short form prospectus in all of the provinces and territories of Canada and may also be offered by way of private placement in the United States.
The deal is subject to normal regulatory approvals and is expected to close on Oct. 9.
Toronto-based NorthWest is an open-ended REIT focused on properties operated as medical offices.
| Issuer: | NorthWest Healthcare Properties Real Estate Investment Trust
|
| Issue: | Unsecured subordinated debentures
|
| Amount: | C$50 million
|
| Greenshoe: | C$7.5 million
|
| Maturity: | Oct. 31, 2020
|
| Bookrunners: | BMO Capital Markets and RBC Capital Markets
|
| Coupon: | 5.5%
|
| Price: | Par, $1,000
|
| Yield: | 5.5%
|
| Conversion premium: | 29%
|
| Conversion price: | C$11.25
|
| Stock listing: | Toronto: NWH.UN
|
| Stock price: | C$8.70
|
| Pricing date: | Sept. 21
|
| Settlement date: | Oct. 9
|
| Distribution: | Short form prospectus in Canada and private placement in the United States
|
| Market capitalization: | C$460.38 million
|
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