By Rebecca Melvin
New York, April 14 - Artis Real Estate Investment Trust sold an upsized C$80 million of seven-year convertible debentures on a bought-deal basis at par to yield 5.75% with an initial conversion premium of 35%, according to a syndicate source.
Initially the series G debenture deal was going to be C$60 million in size.
CIBC World Markets Inc. and BMO Capital Markets led a syndicate of underwriters in the bought deal, including Canaccord Genuity as co-lead.
The initial conversion price is C$18.25. The paper is non-callable with no puts.
Proceeds will be used to fund new acquisitions, to retire existing debt and for general trust purposes.
Distribution will be under a base shelf prospectus being filed with Canadian securities regulators.
Closing is expected by April 21, subject to regulatory approval.
Artis is a Winnipeg, Man.-based real estate investment trust focused on commercial properties, including office, industrial and retail space.
| Issuer: | Artis Real Estate Investment Trust
|
| Issue: | Convertible debentures
|
| Amount: | C$80 million, upsized from C$60 million
|
| Maturity: | 2018
|
| Underwriters: | Syndicate led by CIBC World Markets Inc. and BMO Capital Markets and including Canaccord Genuity
|
| Coupon: | 5.75%
|
| Price: | Par
|
| Yield: | 5.75%
|
| Conversion premium: | 35%
|
| Conversion price: | C$18.25
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Pricing date: | April 13
|
| Settlement date: | April 21
|
| Stock symbol: | Toronto: AX-UN
|
| Stock reference price: | C$13.62 at close April 13
|
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