By Rebecca Melvin
New York, June 25 - Artis Real Estate Investment Trust priced overnight C$40 million of five-year convertible debentures at par to yield 7.5% with an initial conversion premium of 15%, according to a news release.
The Regulation S "bought" deal came at the cheap end of talk for the coupon, which was 7% to 7.5%.
The offering was bought by 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.
The series E debentures will be convertible at the option of the holder into trust units of Artis at any time prior to maturity at a conversion price equal to C$9.30 per unit.
The notes are non-callable until June 30, 2012 and then are provisionally callable until June 30, 2013, if the weighted average trading price of the units is not less than 125% of the conversion price.
Beginning June 30, 2013, the debentures will be redeemable at Artis' option on a minimum of 30-days notice.
Proceeds are expected to be used to repay debt, including mortgage debt, and for working capital.
The offering is expected to close on July 9.
Artis is a Winnipeg, Man.-based real estate investment trust focused on commercial properties located in primary and growing secondary markets in western Canada.
| Issuer: | Artis Real Estate Investment Trust
|
| Issue: | Convertible debentures
|
| Amount: | C$40 million
|
| Greenshoe: | C$6 million
|
| Maturity: | 2014
|
| Underwriters: | Canaccord Capital and CIBC (leads); BMO, National Bank Financial, RBC Capital, Scotia Capital, TD Securities, Blackmont Capital, Desjardins Securities, Macquarie Capital and Brookfield
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion premium: | 15%
|
| Conversion price: | C$9.30
|
| Price talk: | 7% to 7.5%, up 15%
|
| Pricing date: | June 25
|
| Settlement date: | July 9
|
| Distribution: | Regulation S
|
| Stock reference price: | C$8.08
|
| Stock listing: | Toronto Stock Exchange
|
| Stock symbol: | AX.UN
|
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