NorthWest Healthcare greenshoe ups convertibles to C$80.5 million

By Susanna Moon

Chicago, Dec. 21 – NorthWest Healthcare Properties Real Estate Investment Trust said underwriters fully exercised the C$10.5 million over-allotment option on its bought-deal offering of 5.25% convertible unsecured subordinated debentures due Dec. 31, 2021.

The greenshoe exercise brings the total deal size to C$80.5 million, according to a company update.

As reported Dec. 6, NorthWest sold C$70 million of the 5.25% convertibles with BMO Capital Markets and RBC Capital Markets leading the deal.

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.

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