Artis greenshoe fully exercised, ups 7.5% debentures to C$46 million

By Devika Patel

Knoxville, Tenn., July 15 - Underwriters for Artis Real Estate Investment Trust's offering of 7.5% five-year convertible debentures exercised their over-allotment option in full for C$6 million more of the debentures, increasing the size of the issue to C$46 million, the company announced on Wednesday.

As previously reported, the company sold the debentures at par on June 25 in a Regulation S offering 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.

The debentures have an initial conversion premium of 15%. The debentures will be convertible into trust units at any time prior to maturity at a conversion price equal to C$9.30 per unit.

The series E debentures 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.

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

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