Artis REIT to price C$40 million overnight offering of convertible debentures to yield 7% to 7.5%

By Rebecca Melvin

New York, June 24 - Artis Real Estate Investment Trust planned to price C$40 million of five-year convertible debentures in an overnight offering, talked to yield 7% to 7.5%, with an initial conversion premium of about 15%, according to a syndicate source.

Final terms on the convertible series E unsecured subordinated debentures were expected early Thursday.

The sale comes subsequent to the company filing a preliminary short form prospectus with Canadian regulators.

The offering was being sold via a syndicate of underwriters led by Canaccord Capital Corp. and CIBC World Markets Inc., and including BMO Capital Markets, National Bank Financial Inc., RBC Capital Markets, Scotia Capital Inc., TD Securities Inc., Blackmont Capital Inc., Desjardins Securities Inc., Macquarie Capital Markets Canada Ltd. and Brookfield Financial Corp.

There is an over-allotment option for up to an additional C$6 million.

Proceeds are expected to be used to repay indebtedness, including mortgage debt, and for working capital.

The offering is expected to close on July 9, and is subject to normal regulatory approvals including approval of the Toronto Stock Exchange.

Artis is a Winnipeg-based real estate investment trust focused on commercial properties located in primary and growing secondary markets in western Canada.

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