By Stephanie N. Rotondo
Seattle, Dec. 6 – NorthWest Healthcare Properties Real Estate Investment Trust announced a C$70 million bought-deal offering of 5.25% convertible unsecured subordinated debentures due Dec. 31, 2021 on Tuesday.
BMO Capital Markets and RBC Capital Markets are leading the deal, according to a press release.
There is a C$10.5 million over-allotment option.
The C$1,000-par debentures are convertible into units of the REIT at C$12.80 per share. The issue is redeemable from Jan. 1, 2020 to Dec. 31, 2020 at the company’s option, in whole or in part, at par plus accrued interest, assuming the underlying shares hit a 125% price hurdle. From Jan. 1, 2021, the notes are redeemable at any time.
Proceeds will be used, with existing resources, to repay about C$70 million of 10.3% Brazilian term loans maturing December 2016, to fund the C$19.1 million acquisition of a medical office building located in Hamburg, Germany, to fund the future repayment of higher cost convertible debentures with 2017 par calls and for general trust purposes.
The REIT is based in Toronto.
| Issuer: | NorthWest Healthcare Properties Real Estate Investment Trust
|
| Securities: | Convertible unsecured subordinated debentures
|
| Amount: | C$70 million
|
| Greenshoe: | C$10.5 million
|
| Maturity: | Dec. 31, 2021
|
| Bookrunners: | BMO Capital Markets, RBC Capital Markets
|
| Coupon: | 5.75%
|
| Price: | Par of C$1,000
|
| Yield: | 5.75%
|
| Conversion premium: | 32.9%
|
| Conversion price: | C$12.80 per share
|
| Call options: | Between Jan. 1, 2020 and Dec. 31, 2020 at par plus accrued interest, assuming the stock price hits a 125% hurdle; from Jan. 1, 2021 at par plus accrued interest
|
| Pricing date: | Dec. 6
|
| Settlement date: | Dec. 15
|
| Stock symbol: | TSX: NWH
|
| Stock price: | C$9.63 as of Dec. 6 close
|
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